Beijing and Islamabad convened the 13th Joint Cooperation Committee (JCC) meeting online on Friday, with a focus on enhancing the security of Chinese workers in Pakistan and advancing the ML-1 railway project, estimated to cost over $6 billion, under the China-Pakistan Economic Corridor (CPEC).
The meeting, which addressed joint energy and infrastructure development initiatives, was prompted by the March 26 suicide attack that claimed the lives of five Chinese engineers and their local driver near the under-construction Dasu dam.
Pakistan’s planning minister, Ahsan Iqbal, briefed the media on the meeting’s outcomes, highlighting discussions regarding Chinese security concerns. He stated that Pakistan had established a special force to ensure the safety of CPEC projects and reassured China of ongoing efforts to enhance security measures.
In response to the Dasu attack, Pakistan’s top economic body approved $2.5 million in compensation for the families of the victims. Both sides also agreed to initiate additional projects beyond the scope of CPEC, with a shared commitment to bolstering security measures.
Iqbal announced the initiation of the ML-1 railway project, aimed at upgrading the existing railway network connecting Karachi to Peshawar. The project, costing $6.76 billion, has progressed significantly, with the project feasibility approved in two phases. The bidding process among eligible Chinese companies is set to commence promptly to address the railway track’s deterioration.
The planning minister also provided updates on completed CPEC projects, highlighting the successful completion of 16 energy projects with a generation capacity of 8,020 MW. Additionally, ongoing projects, such as the Suki Kinari hydropower project and others in the hydel and coal-based sectors, are nearing completion.
Concrete progress on the next phase of CPEC is anticipated following Prime Minister Shahbaz Sharif’s upcoming visit to China. Sharif, in a meeting with representatives of Chinese companies, emphasized the strengthening bilateral relations and urged Chinese entrepreneurs to explore investment opportunities in Pakistan’s special economic zones, particularly in the textile sector.
Ammar Habib Khan, a senior research economist, acknowledged China’s financial assistance to Pakistan while suggesting Islamabad’s interest in restructuring approximately $15 billion in loans, primarily for power and infrastructure projects. He emphasized that debt restructuring could alleviate Pakistan’s financial burdens and potentially lead to reduced electricity prices.
