Cabinet body decides to set up CPEC Business Forum.

Byline: Fawad Yousafzai

ISLAMABAD -- Federal Minister for Planning, Development and Reform, Makhdum Khusro Bakhtyar said the Cabinet Committee on China-Pakistan Economic Corridor (CPEC) has decided to establish CPEC Business Forum to tap true potential of this important corridor.

Talking to media after the committee meeting, the minister said that the formation of the forum was being deliberated since long and now its establishment has formally been decided.

Going back on its earlier decision of constructing Karachi to Peshawar Railway (ML-I) on build-operate-transfer (BOT) mode the government has announced to undertake $8.2 billion project on previously agreed loan basis (EPC mode).

Govt to undertake $8.2b ML-I project on EPC mode now

'An implementation committee on ML-I Project (Karachi to Peshawar Railway), headed by Minister Railways was constituted to identify financial savings, phasing of the project, scope etc. within two weeks in order to fast-track the project,' Makhdum Khusro Bakhtyar, Minister for Planning, Development and Reform said while briefing the media on decisions of the Cabinet Committee on China Pakistan Economic Corridor. The Cabinet Committee on CPEC met here with Makhdum Khusro Bakhtyar, Minister for Planning, Development and Reform in chair. The meeting was attended by members of the committee and secretaries of the federal ministries.

The minister said that cabinet committee on CPEC has decided to undertake the ML-I project on the previously agreed terms of agreement, instead of BOT. Replying the query the minister said that now the project will be completed on EPC basis under the terms that had been agreed earlier. Regarding the mode and terms of Chinese loan he said that final decision in this regard would be made in the light of the implementation committee recommendations.

It is pertinent to mention here that soon after coming into power the PTI government while criticizing the previous regime for choosing the EPC mode for ML-I project and said that wants to change the funding mode of ML-I Project from loans to Built Operate and Transfer (BOT) mode. Earlier it was agreed that China will provide concessionary loan for $ 8.2 billion for ML-I project. However after the government decision to undertake the project on BOT mode, china refused to join.

The minister further said that the Cabinet Committee on CPEC has decided to launch an important road project of Western Route in Balochistan soon.

He said previously no...