Pakistan to get 9pc of Gwadar income, 15pc of FEZ: China

ISLAMABAD: China on Monday said that Pakistan would be getting 9 percent share out of total income of Gwadar Port and 15 percent of Free Economic Zone exactly on the pattern of agreement signed with Port of Singapore Authority (PSA) which was later on struck down by Islamabad authorities.

China has not agreed to include construction of Diamer-Basha dam as part of China Pakistan Economic Corridor (CPEC) at the moment not because of territorial dispute with India but its civil work was more expansive than biggest Three Gorges Dam in China having five time more capacity of generating electricity than Basha dam of 4500 MW.

“Pakistani government has made very smart move to strike a good deal as they will get 9 percent share out of total income of Gwadar port instead of total earned profits, although, the agreement was signed on Built, Operate and Transfer (BOT) basis. The Gwadar port will start earning profits after nine years. Pakistan will also get 15 percent of total income from Gwadar Free Zone,” Lijian Zhao Deputy Chief in Chinese High Commission in Islamabad said while addressing Third Annual CPEC Media Forum organized by Pak-China Institute in collaboration with Chinese Embassy in Pakistan here on Monday. Some Chinese journalists participated in this media forum including Ms Wang Lin representing China Business News, Meng Xianglin Editor Peoples’ Daily of China. Ms Wang Lin on the issue of increasing trade deficit said that US companies established units in China and sending products to Pakistan but China considered its exports on the basis of only value addition. Pakistan, she said, will have to explore its comparative advantages in order to penetrate into Chinese market.

Earlier, in the inaugural session, newly appointed China’s Ambassador in Pakistan Yao Jing said that the CPEC had resulted into creating new confidence in both Pakistan and China as the two countries had entered into new phase of progress and prosperity. He said that the CPEC would bring prosperity in whole region as many projects were under completion in Pakistan. He said that the media would have to play its due role as they were our great partners. Now the media persons should pay visit to CPEC projects to witness physical progress on the ground, he added. He said he possessed knowledge about Pakistan as he had worked in China’s Foreign Ministry at Pakistan related desk, adding that he had worked as Deputy Mission Chief in India and also worked in Afghanistan.

On establishment of SEZs, Lijian Zhao said that three SEZs including Rashakai, Dabeji and Faisalbad seemed feasible out of total nine as all feasibility studies done by federal and provincial governments shared with Chinese side during recently held 7th JCC meeting in Islamabad.

Senator Mushahid Hussain, Chairman Parliamentary Committee on CPEC said that China gave vote of confidence by striking CPEC with Pakistan. He said that there were currently 300 projects undertaken by Chinese in Pakistan on which 9,581 Chinese nationals were working on CPEC projects and around 10,000 were working on non

CPEC projects. So total 20,000 Chinese are working as technicians and supervisors for all projects taking place with China’s assistance, he added.

He said that there were no Chinese labours working in Pakistan and there was need to sift facts from perceptions. “Around 60,000 Pakistanis are working on CPEC related projects,” he said and added that one million jobs would be created after relocation of SMEs factories from China into Special Economic Zones (SEZs).

The CPEC, he said, is strategically important for Pakistan and its above any governments coming into power in the country. He said that the balance was shifting from west to east as USA and Europe is on decline after witnessing level of speeches of leaders in USA and Brexit episode in Europe.

On other hand, he said, China possessed more importance on regional and global level and it would have risen without colonialism, occupation, use of force and war and USA was in trouble because of pluralist world. He mentioned that there was another unique development happened in China that they lifted 700 million from clutches of poverty as such thing had never happened in human history.

He said that USA and India was hatching for sparking new cold war with the objective of containment of China and there was need to counter these things from our side.

Former Senator Afrasiab Khattak said that this region and its inhabitants were prosperous when the Silk Route was operational and now China was making efforts to revive the route with its Belt and Road Initiative. He stressed upon the need for promoting close trade and economic ties with regional states especially with Iran and Afghanistan.

At the end CPEC Media Forum endorsed for initiation of CPEC Award for print and electronic media on the basis of best reports and photographs on annual basis.