ISLAMABAD: At a time when
Pakistan and China are going to sign $8
billion Mainline (ML-1) rail up-gradation network during the ongoing visit of PM Nawaz Sharif,
Pakistan has earmarked
Rs155-160 billion as
matching financing for executing development
projects of energy and infrastructure sectors in the upcoming budget 2017-18 under the $46
billion China
Pakistan Eco**mic Corridor (CPEC).
During the ongoing visit of PM Nawaz Sharif to China for attending the One Belt One Road (OBOR) conference, both sides are expected to sign the Long Term Plan (LTP- 2015-2030) and finalising grants component for Gwadar development, including construction of Gwadar airport. Some positive outcome is also expected on hydropower generation, including Diamer-Bhasha Dam during the visit of PM to China. The government is also set to allocate funding for the Bhasha Dam in the next PSDP for 2017-18.
After signing of ML-1 to upgrade the
Pakistan Railways’ network at estimated cost of $8.5 billion, the total cost of much-hyped
CPEC funded
projects will go up from $46
billion to $54.5 billion. Under the initiative OBOR, China is financing 900
projects in different parts of the world out of which 54
projects are under implementation in Pakistan.
During the ongoing visit of the premier, the number of
projects under LTP 2015 to 2030 and other Memorandum of Understandings (MoUs) could go up to 90
projects as talks would be held between both sides for inclusion of 36 more
projects under
CPEC over the next few years.
However, out of total proposed funding of Rs700
billion federal outlay for Public Sector Development Programme (PSDP) for executing
projects of ministries/divisions and attached departments, more than one/fourth funding to the tune of
Rs155-160 billion would be utilised for this major initiative in consecutive third year since inception of CPEC. “Pakistan is going to utilise over $1.5
billion as
matching money to accomplish
CPEC projects,” official sources confirmed to The News here on Friday.
In the outgoing financial year 2016-17, the government had allocated Rs130
billion on eve of last budget. **w the indicated upwards allocation of just Rs25 to 30
billion funding would be made for the upcoming financial year for catering the requirement of
CPEC which is being labeled as game changer by the ruling elites and policy makers here in this country.
For providing foolproof security to Chinese workers, the government is all set to allocate Rs15
billion for security related
projects being executed by Interior Division during the coming budget.
“Out of allocated amount of
Rs155-160 billion for
CPEC projects, one percent will be earmarked for security purposes so Rs1.5 to Rs1.6
billion will also be utilised for security purposes for
CPEC projects in the coming financial year,” top official sources confirmed to The News here on Friday.
Total allocated amount for
CPEC projects including energy, infrastructure and security would be standing around Rs 170-175
billion during the next financial year 2017-18.
The government has proposed 50 percent funding to the tune of Rs350
billion for road and power sector
projects for the upcoming budget 2017-18 out of total earmarked funding of Rs700
billion for the PSDP. In road and power sector, major chunk of funding is going to be utilised for
CPEC projects in the next financial year.
The
CPEC projects will enter into their third year of implementation during 2017-18 as early harvest
projects under energy cooperation will be completed in the coming financial year. It will help
Pakistan to produce 5000MW electricity and reducing outages in the country.
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