Payment issue with Chinese IPPs remains unresolved; focus shifts to industrialisation, ML-1, and Gwadar development
ISLAMABAD: The 14th Joint Cooperation Committee (JCC) meeting of the China-Pakistan Economic Corridor (CPEC) concluded in Beijing on Friday, ushering in Phase-II of the landmark initiative with a comprehensive roadmap for the next decade. However, the long-standing issue of capacity payments to Chinese Independent Power Producers (IPPs) remained unresolved, as Islamabad sought an extension in repayment timelines.
Federal Minister for Planning Ahsan Iqbal, in his closing remarks, hailed CPEC Phase-II as a “corridor of industrialisation, technology, sustainability, and shared prosperity.” The new action plan, signed earlier this month, sets out ambitious targets across industrial cooperation, Special Economic Zones, agriculture modernisation, maritime development, mining, and flagship connectivity projects, including the ML-1 railway upgrade, Karakoram Highway (KKH) realignment, and Gwadar port development.
While China expressed willingness to move ahead, it pressed Pakistan for firm commitments on partial ML-1 financing, particularly in the context of Islamabad’s ongoing IMF programme.
Highlighting the “five corridors” of Phase-II — growth, innovation, green development, livelihood, and regional connectivity — the minister aligned them with Pakistan’s URAAN 5Es framework, stressing urgency in fast-tracking ML-1 and KKH projects for uninterrupted connectivity and regional integration. He proposed holding JCC meetings every six months and Joint Working Group sessions quarterly to ensure effective oversight.
Ahsan Iqbal also announced that both sides would release an updated CPEC Long-Term Plan within 90 days, reflecting the convergence of Pakistan’s economic vision with China’s development strategy. Reassuring Beijing, he reaffirmed Pakistan’s full commitment to the safety of CPEC projects and Chinese personnel, calling CPEC a “symbol of iron-clad friendship.”
Looking ahead, he proposed hosting the 15th JCC in Islamabad in May 2026 to coincide with the 75th anniversary of Pakistan-China diplomatic ties.
Story by Mehtab Haider
