Rs87 bn allocated for CPEC projects in the budget 2021-22
Dispelling the impression of slowing down of CPEC projects, Federal Minister for Planning Asad Umar has said the government has allocated Rs87 billion for the Public Sector Development Program (PSDP) for the next budget 2021-22 for the execution of CPEC projects.
The National Economic Council (NEC) authorized an Rs42 billion Western Alignment budget and an Rs6.2 billion Mainline Budget (ML-1). The government has set aside Rs7 billion in the Special Economic Zones (SEZs) of Rashakai, Dhabeji, Faisalabad, and Bostan for the provision of basic commodities such as utilities and other infrastructure.
“The appetite for making new commitments by Chinese companies is expected to increase, so the financing of ML-1 will now be finalized. The increased circular debt and nonpayment to IPPs had created difficulties which also hindered the ML-1, but now after debt clearing, the Chinese appetite for new investment would improve,” Asad Umar said while briefing newsmen here at the P Block along with CPEC Authority Chairman Lt Gen (retd) Asim Salem Bajwa on Tuesday.
The chairman of the CPEC Authority stated that the Industrial Cooperation Framework was being considered as part of the deliverables for the forthcoming CPEC Joint Cooperation Committee (JCC). The government’s agriculture reform package was communicated with the Chinese side, so collaboration and matchmaking between Pakistani and Chinese enterprises will take place, he added.