PM’s planned visit to China: RMB account, loan rescheduling possible
Well-informed sources told that the government is reportedly finalising draughts of more than a dozen agreements, including the rescheduling of Chinese loans, the opening of accounting in RMB, and cyber security, to be signed during Prime Minister Shahbaz Sharif’s first visit to China next month.
A few of the agreements and memorandums of understanding (MoUs) that need to be signed are for the following: I 10,000 MWp solar projects; (ii) LNG procurement; (iii) debt restructuring; (iv) ML-1; (v) Karachi Circular Railway; (vi) agriculture; (vii) the opening of RMB Account; (viii) cyber security; (viii) flood relief and rehabilitation; and (x) the relocation of Chinese industries in S On October 11, SAPM Syed Tariq Fatemi invited Zafaruddin Mahmood, Special Assistant to the Prime Minister Dr. Jehanzeb Khan, and Advisor to the Prime Minister on Establishment Ahad Cheema to meet with the Chinese ambassador in order to finalise preparations for the Prime Minister’s upcoming trip to Beijing later this month.
In the course of the discussion, the Chinese and Pakistani sides discussed the prospect of signing agreements or memorandums of understanding (MoUs) on a number of significant projects of shared interest. The Chinese ambassador was asked to let his government’s appropriate departments know that he would support the signing of such pacts.
The idea to build a railroad track from Thar Coal Block II to Chor Station and upgrade an existing track from Hyderabad to Mirpurkhas for the delivery of Thar coal to various power plants in the nation that now rely on imported coal was recently considered by the prime minister.
The project is expected to cost approximately Rs 55.509 billion, can be finished in 18 months, has an internal rate of return (IRR) of 15%, and has a payback period of 9 years, according to Secretary of Railways. Additionally, Secretary Power mentioned that whereas imported coal-based power projects could mix 20 to 25 percent of Thar coal with imported coal for their operations, the Lucky Power Plant is 100% convertible to Thar coal.
PM’s planned visit to China: RMB account, loan rescheduling possible
Due to its long-term benefit of changing reliance from external to domestic sources of energy generation and large savings in foreign exchange, the Prime Minister stressed the importance of the project as one of the most essential projects for Pakistan’s economy.
Following discussion, the following decisions were made: I the Ministry of Railways will rationalise the project’s cost; (ii) the Minister of Railways will confirm the project’s completion date; (iii) Pakistan Railways will consider carrying out the project through a special purpose vehicle under terms and conditions that will be decided between the Government of Pakistan and the Government of Sindh; and (iv) the Federal Government and the Government of Sindh will split the project’s cost (COD).
