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Sequence of Presentation

• Introduction• Scope of Study• Prospective socio economic benefits• Controversies attached with the project • Role of provinces and other departments• Analysis and conclusion• Workable strategies

"Pakistan launches strategic port". BBC News. 2007-03-2RAG-IV

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Team RAG-IV

• Mr. Asad Ullah Larik (Pakistan Customs Service)• Mr. Anwar Ul Haq Azad Capt. (R) (Pakistan Administrative Service)• Munawar Ali Mithani (Ex-PCS)• Nisar Ahmed Burki (IRS)• Rizwan Bashir (Pakistan Customs Service)

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Introduction

• China hopes that Pakistan plays a greater constructive role in regional and international affairs. We would like to work with Pakistan to safeguard peace, stability, development and prosperity in the world” …..Sun Weidong, China’s Ambassador to Pakistan.

RAG-IV

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Scope

Prospective Socio Economic BenefitsControversies attached with the ProjectRole of ProvincesRole of Planning commission, WAPDA, PPIB and MoFStrategy both at Strategic and Operational levels for Short and

Medium term to enhance Socio-economic condition of the Country

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PROSPECTIVE SOCIO-ECONOMIC BENEFITS

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Prospective Socio-Economic Benefits

• China’s investment surpasses all foreign investments• Investments of $274 billion- GDP will increase by 15 %• Provincial harmony- better connectivity• Expected energy generation-17045MW• Encouragement for foreign countries to invest in Pakistan• Increased productivity in industrial sector & Allied activities

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Prospective Socio-Economic Benefits

• Special Economic Zones export oriented industries• Increase in HDI-Baluchistan and KPK and Sindh• Opening in Job Opportunities• Communication network-1300 Km long fiber optic fiber project

amounting to 44 million$• Reduced dependence on IMF and World Bank• Income from cargo handling, freight etc

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Prospective Socio-Economic Benefits

• Cooperation in Interdiction of narcotics with China• Increase in Tourism• Image building of Pakistan• Poverty reduction• Transport sector Expansion• Infrastructure development

Rail & RoadSea, air and Dry Ports

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Controversies attached with the Project

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Controversies attached with the Project

• Route Dispute• Whether Punjab oriented?• Demography of Gwadar• Control over resources• Internal displacement & compensation• Location of economic zones• Orange line project• Indian Objections on route

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Role of Provinces

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Role of Provinces

• Ownership of CPEC• Provision of land and allied services• Law and order situation • Awareness and consensus building• Security assistance to law enforcement agencies

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Role of Provinces

• Identification of commercially viable sites for SEZs• Land acquisition• Constitution of Committee to monitor progress of projects

at provincial level• Skilled and Technical Work force for upcoming projects• Strengthening provincial P&D departments and BOI to

liaison with Federal government

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Role of Planning Commission, WAPDA, PPIB, and MoF

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Role of Planning commission

oScientific planning for all projects and coordination with provincial P&Ds and BOIs

oRelease and update information regarding:oRouteso Economic zoneso Energy projects

oExpeditious approval of projectsoTimely and effective meeting of 10xmember of steering committeeoCost benefit Analysis of the projects

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Role of WAPDA

• Finalization of hydro power projects at upper Indus• Up-gradation of transmission lines• Construction of new Grid stations• Acquisition of Land for installation of transmission lines and grids• Expedite surveys and feasibility reports

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ROLE OF MINISTRY OF FINANCE

• Analysis of time frame and payback modality• Cost benefit analysis of soft loans• Timely release of funds

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ROLE OF PUBLIC POWER & INFRASTRUCTURE BOARD

• One Window Facilitator • Recommend and facilitate development of power policies• Coordinate with Provincial governments, AJK and regulatory bodies in

implementation of power policies• Execute, administer and monitor contracts awarded under CPEC • Expedite existing and new power projects

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Analysis & Conclusions

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Strengths

• Infrastructure Development• Industrialization• Energy sufficiency• Employment

Weaknesses

• Corruption• Poor Human

Resource• Fledgling consensus

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Opportunities

• Human Resource development• Room for negotiation• Provincial harmony

Threats

• International Conspiracies• Terrorism• Separatist Elements• Political Instability• Climate Degradation• Local manufacturing

industry

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A Road to Socio-Economic development

OrAnother Missed Opportunity

Conclusion to Analysis

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Workable Strategies

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NATIONAL AWARENESS PROGRAMME

Diagnosis• Recent controversial

statements and apprehensions of China about capacity of Pakistan to seriously undertake the project

Action Plan ( Short Term)• Quarterly meeting of the parliamentary

committee on CPEC • Awareness programmes and Seminars be

arranged at provincial and federal level.• Regular programmes on electronic and print

media showcasing the benefits of project

 "Politicians hit out at 'unfair' Pakistan-China Economic Corridor". The Express Tribune. 22 April 2015 25

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Diagnosis • Recent controversial

statements and apprehensions of China about capacity of Pakistan to seriously undertake the project

Action Plan ( Medium Term)

• Inclusion of prospective benefits in the curriculum• Liaison of Federal and Provincial information

Ministries• Role of PEMRA

Resources Ministry of Information to utilize the available resources

OutcomeDevelopment of national consensus and expeditious implementation of

projects "Politicians hit out at 'unfair' Pakistan-China Economic Corridor". The Express Tribune. 22 April 2015

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RESOLUTION OF DISPUTE ON ROUTES

Diagnosis

• Route Dispute

Action Plan ( Short term)• Briefing by planning commission to all stakeholders• Ministry of information to broadcast programmes

showcasing progress of work on western route.• Justification of eastern route viz a viz China’s concerns

ResourcesParliamentary committee and planning commission

OutcomeDevelopment of national consensus on routes and prioritization

"Economic corridor: Chinese official sets record straight". The Express Tribune dated 2 March 2015

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SUPPORT TO MANUFACTURING SECTORDiagnosis

• Influx of Chinese goods

Action Plan

• Development of SEZs, exemptions and utilities• Qualitative improvement in manufacturing sector• Construction of cold storages

ResourcesMinistry of industries in collaboration with Ministry of commerce and FBR.

OutcomeConcerns of traders will be addressed leading to effective trade policy.

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SELECTION OF SITES FOR ECONOMIC ZONES

Diagnosis

• Lackluster response of Provinces

Action Plan (short and medium term)• Feasibility studies• Acquisition of land for SEZs• Earmarking of funds for construction of SEZs• Completion of formalities for award of status of SEZs

ResourcesMinistry of Industries, National Industrial Park, Federal Board of Revenue,

OGDC, WAPDA, and provincial P&Ds and Finance Ministries.Outcome

Speedy establishment of economic zones and related infrastructure.

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LEGISLATIVE PROTECTION

Diagnosis

• Chequered political history and apprehension of foreign investors

Action Plan ( Short &Medium term )

• Promulgation of an ordinance at Federal and Provincial level for protection of CEPC project • Ordinance may be approved later on by respective

assemblies.

ResourcesFederal and Provincial Law Ministries.

OutcomeContinuity of the project and building of investor confidence

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IMPROVEMENT IN TECHNICAL EDUCATION

Diagnosis

• Poor Technical and vocational human resource

Action Plan ( Short & Medium term)• Establishment of technical and vocational institutes along

proposed sites of SEZs • Strengthening of TEVTAs• Revision of curriculum • Capacity building of faculty

ResourcesNational technical and vocational authority and all provincial TEVTAs.

OutcomeTrained human resource to cater enhanced industrial needs.

Zhen, Summer (11 November 2015). "Chinese firm takes control of Gwadar Port free-trade zone in Pakistan". South China Morning Post dated 11 December 2015

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RELOCATION OF COAL BASED POWER PLANTS

Diagnosis • Coal based power

plants in Punjab are not feasible

Action Plan ( Short term)• Coal based power plant planned at Punjab may

be shifted to Sindh and Balochistan along the sea ports.

ResourcesPlanning Commission, MoF, and Ministry of Climate Change

OutcomeEnvironmental protection and saving in transportation cost

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IMPROVING SECURITY ENVIRONMENTDiagnosis

• Security in Pakistan-China’s prime concern

Action plan (Medium term)• Deployment of LEAs all along CPEC• Fresh recruitment from local population• Strict Implementation of National Action Plan.• Intelligence sharing mechanism with China• Strengthening capacity of provincial law enforcement agencies

ResourcesMinistry of defence, Ministry of interior and concerned home ministries.

OutcomeAchieving overall objectives and attracting FDI

"COAS Assures Balochistan People Will Prosper With Upcoming Projects". The News dated 1 January 2016.

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STRONG ANTI SMUGGLING POLICY Diagnosis

• Goods in transit may get smuggled in Pakistan.

Action Plan ( Medium term)• Designated cell at FBR• Strengthening Directorate of Transit Trade• Coordination with provincial governments and other

law enforcement agencies.• Effective utilization of proposed Border Security Force.

ResourcesFederal Board of Revenue along with concerned Provincial home ministries.

Outcome Facilitation of transit trade and decrease in damage owing to

smuggling/pilferage

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Final Word

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