CCoCIP for accelerating work on finalising financing agreement with China on ML-1

ISLAMABAD  -   The Cabinet Committee on Chi­nese Investment Projects (CCo­CIP) has asked the ministries concerned to accelerate work on finalising financing agree­ment with China on Railway Main Line-1(ML-1).

The Cabinet Committee on Chinese Investment Projects (CCoCIP), which met with Fed­eral Minister for Planning, Development, and Special Ini­tiatives Ahsan Iqbal in chair, discussed various matters re­lated to transit trade with Af­ghanistan and Central Asian countries via Gwadar Port.

The meeting was attended by key government officials, in­cluding Federal Minister for Pe­troleum Division Musadiq Ma­lik, Federal Minister for Energy Awais Laghari, Federal Minis­ter for Commerce Jam Kamal Khan, and secretaries from the relevant Ministries, along with representatives from the China-Pakistan Economic Corridor (CPEC) Secretariat and the Plan­ning Ministry. The Cabinet Com­mittee on Chinese Investment Projects (CCoCIP) directed the Ministries of Finance, Economic Affairs to accelerate the negotia­tions process for the financing agreement for the phase-1 of ML-1, official source told The Nation. There is need to initiate a big project under China Paki­stan Economic Corridor (CPEC) to mark the Phase-II of the proj­ect, Ahsan Iqbal remarked.

Notably, the Federal Cabinet had last month allowed the Ministry of Railway to initiate negotiations on the Financing Commitment Agreement with the National Railway Adminis­tration, Government of China, on phase-1 of ML-1, with the direction to submit the draft agreement for approval of the Cabinet once the negotiations had concluded. Draft Financ­ing Commitment Agreement for phase-1 of ML-1 was for­mulated. The draft agreement was already shared with Eco­nomic Affairs Division, Minis­try of Foreign Affairs, Ministry of Planning, Development & Special Initiatives and Finance Division, the source said.

In July 2023, China and Paki­stan had agreed to implement the ML-1 Project in a phased manner. Phase-1 comprised the Karachi to Multan seg­ment, including Pakistan Rail­ways Academy, Walton, while Phase-2 covered the Multan to Peshawar segment.

In July-August 2024, Chinese experts visited Pakistan and confirmed to start work, initial­ly, on the Karachi-Hyderabad section of Phase-1, subject to its endorsement by the Pakistan side. The agenda of the meet­ing revolved around expediting several ongoing projects under the CPEC framework. Discus­sions covered the provision of electricity to the Rashakai Spe­cial Economic Zone (SEZ), im­port/export policies for Gwadar Free Zone, transit trade with Afghanistan and Central Asian countries via Gwadar Port, in­ternational transshipment of seafood, and the development of the Karachi Coastal Compre­hensive Development Zone.

Addressing the meeting, Planning Minister Ahsan Iqbal emphasized the need for a proactive approach in serving investors. “We must treat our investors like customers,” he remarked. He further directed all relevant ministries to pro­vide their comments on pend­ing matters within few days to ensure smooth progress. “Deci­sions should be taken swiftly, and investors should not be kept waiting for long, as delays discourage investment,” the Minister stressed. The minister for planning directed secre­taries of the line ministries to develop actionable plans and address unresolved issues and pendencies. Discussing security measures for Chinese officials working on CPEC projects, Ah­san Iqbal stressed that security protocols should not create an atmosphere of fear or hinder business operations. The com­mittee concluded by reiterating the government’s commitment to resolving any bottlenecks faced by Chinese investors and ensuring that CPEC projects continue to progress without delays. Ahsan Iqbal called for enhanced coordination be­tween ministries and smooth decision-making to boost inves­tor confidence and accelerate the realization of key projects.