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Pakistan Urges China to Expedite $10bn ML-1 Railway & SEZ Projects
Pakistan pushes for swift progress on the $10bn ML-1 railway project and SEZs in Karachi & Islamabad under CPEC. Minister Ahsan Iqbal calls for simultaneous technical and financial teams from China.
ND
by News Desk
2024-12-07
Pakistan Urges China to Expedite $10bn ML-1 Railway & SEZ Projects

Pakistan has formally requested China to expedite the dispatch of technical and financial teams to finalize the agreement and initiate the first phase of the $10 billion Karachi-to-Peshawar Railway Line (ML-1) and develop two model special economic zones (SEZs) in Karachi and Islamabad.

In a CPEC review meeting chaired by Minister for Planning and Development Ahsan Iqbal on Friday, it was revealed that during consultations with the Chinese ambassador in Islamabad, Pakistan emphasized the urgency of sending simultaneous teams of technical and financial experts for the ML-1 project.

The minister recounted that during Chinese Premier’s October visit to Pakistan, it was agreed that a railway technical team would visit Pakistan, and their presence, along with financial experts, is essential for finalizing $1.1 billion worth of financing arrangements for the first phase of ML-1 between Karachi and Hyderabad.

"During a recent meeting with the Chinese ambassador, it was also agreed that a team of financial experts would accompany the technical team to ensure the efficient resolution of all matters related to the project," read an official statement.

Prioritizing Economic Zones and Infrastructure

Highlighting the critical components of the China-Pakistan Economic Corridor (CPEC), Mr. Iqbal noted that the Karakoram Highway (KKH) and ML-1 remain flagship projects. The second phase of the KKH will proceed as planned, requiring no fresh commitments.

Additionally, China has been requested to develop model SEZs in Karachi and Islamabad, paving the way for similar initiatives across Pakistan. The Board of Investment has been tasked with finalizing land availability for SEZ development in Islamabad.

To address energy needs, the Power Division and Pesco were instructed to energize the internal network of Rashakai SEZ and meet its current electricity requirements promptly.

Gwadar Tax Exemptions Clarified

Addressing concerns regarding Gwadar’s tax exemptions, the Federal Board of Revenue (FBR) clarified that the China Overseas Port Holding Company (COPHC) and other businesses in Free Zones enjoy tax holidays and incentives under the Finance Act. Notifications confirming the absence of turnover tax for SEZ enterprises in Gwadar were shared with the Chinese side for clarity.

The accelerated execution of CPEC projects remains a high priority for Pakistan to solidify its economic and strategic ties with China while enhancing regional connectivity.
Tagged:

cpec

EconomicGrowth

PakistanChina

ML1Railway

SEZDevelopment
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