Speaking at the concluding session “CPEC: Challenges and opportunities” at a seminar on ‘Stimulating firm productivity for growth’ held at Learning Resource Centre, State Bank of Pakistan, Naheed Memon, Chairperson, Sindh Board of Investment (SBI) said Chinese authorities have no funds to finance Karachi Circular Railway (KCR) project under CPEC. She said that officials from National Development and Reforms Commission (NDRC), China, during recent meeting expressed concern over repayment of concessional loans of US$ 2 billion, if it was given for KCR project under CPEC.
She said that Orange Line project was immediately included under CPEC with no argument but when it came to KCR project, the Chinese authorities had assured to give only technical assistance, due to lack of funds and suggested the Sindh government to find new financer for the project from international market.
The SBI chairperson said the government had earlier announced that it will allow 10 years tax holidays against industrial investments in Special Economic Zones (SEZs) however, the Federal Board of Revenue (FBR) had now given a deadline of year 2020 to establish industrial units in SEZ to get entitled for 10 years tax holidays else they would only be allowed five years tax concessions.
She feared that if the federal government remained unable to incentivize the industrial cooperation between China and Pakistan for CPEC, this would be a failed project; adding that there was no option but to have collaboration with Chinese industrial counterparts for joint ventures in order to get sustainable industrialization in the country.
She also stressed the need for industrial cooperation between the two countries as it would directly create jobs and uplift socio-economic conditions.
Other speakers were Dr Syed Shafqat Ali Shah Jamot, CEO Matiari Sugar Mills Limited, Dr Kaiser Bengali, Dean SZABIST, Dr Anjum Nasim, senior research fellow and Dr Anjum Altaf, former Dean, LUMS.
They said the Chinese government only wanted land route and didn’t prioritize energy projects under CPEC, due to the reason of US interference at its south sea route.
Furthermore, they said that CPEC, which begun with lot of ‘ifs’, might become a red flag, if the practice of making CPEC-related details a secret continue.
Instead of considering CPEC as game changer, the project is a geostrategic and geopolitical game and Pakistan needs to play right in order to avoid losing the game, speakers added. A large number of participants were present at the event.
