Energy, infrastructure, SEZs high priority: Pak-China corridor being set up: Miftah March 05, 2014 WASIM IQBAL 0 Comments The government is in the process of issuing licences to companies to negotiate with their Chinese counterparts on construction of energy and infrastructure projects relating to Pakistan China Economic Corridor, Dr Miftah Ismail, Special Assistant to the Prime Minister/Chairman, Board of Investment (BoI) told Business Recorder in an exclusive talk. He said working groups have prepared their recommendations during last nine months for consideration of Pakistan-China Joint Co-operation Committee (JCC). Chinese companies would arrange finance from Chinese banks for the projects. He said governments of China and Pakistan approved in principle the construction of trade corridor from Kashgar to Khunjerab and Gwadar. Economic corridor has three priority areas - energy plants, infrastructure projects and special economic zones. Responding to a question on exemption of Chinese companies from public procurement rules, Miftah said a committee is studying PPRA rules so that suitable amendments could be made in accordance with future requirements. He pointed out that existing PPRA provisions could be observed in case of awarding small contracts but mega projects require more profound rules. The rules will be amended keeping in view the essence of competitiveness, transparency and flexibility which cater to the mega hydropower projects, he added. The government has to hold International Comparative Bidding (ICB) to award contracts under PPRA rules. However, he said these rules are not applicable to government to government economic co-operation. Negating the perception that Pakistan is relaxing PPRA rules for Chinese companies, he said the government of Pakistan negotiated the construction of Economic Corridor with Chinese Government and Chinese Government further outsourced contracts to state owned Chinese companies. When China government is financing any project it leaves no room for PPRA rules to be followed, he maintained. Talking about providing a level play field to foreign investors, Miftah said the government of Pakistan Muslim League (N) is honouring those contracts which were sighed by the previous governments of Pakistan Peoples Party (PPP) and Pervez Musharraf in a bid to improve the confidence of foreign investors in Pakistan. He said that BoI did not receive any substantive complaints from foreign investors on government policies. However, the Board received complaints from power producing companies when the government failed to settle the circular debt. Miftah said a two-member committee has finalised its recommendations on new auto policy which has been prepared in consultant with the stakeholders. Responding to a question on Pak-US Bilateral Investment Treaty (BIT), he said the line ministries showed their reservations on the clause of international arbitration. He stated that currently the BoI is negotiating BIT as well as Free Trade Agreement (FTA) with the US. He admitted that BoI did not have any in-house capacity to negotiate FTA or BIT and would hire legal experts who will assist BoI in reviewing the drafts especially in light of the new BIT template sent by the US Administration. Talking about the Special Economic Zones (SEZs), he said they reviewed the existing laws and found certain ambiguities for example it is not clear whether these zones are SEZs or Export Processing Zones (EPZs). He said SEZs are exempted from custom laws which are applicable outside these zones. He however stated that BoI had approved setting up Khairpur Special Economic Zone (KSEZ) which is being developed in Khairpur District. Miftah said the Investment Policy 2013 and its implementation did not help the previous government achieve investment targets. Foreign Direct Investment (FDI) dropped from $5 billion to $600 million during the four-year tenure of former Chairman BoI. He said BoI is working to make the business environment conducive for foreign investors with special focus on improving Pakistans position in the index of Ease of Doing Business and Global Competitiveness. Replying to another question, Miftah said the Foreign Office terminated 62 Honorary Investment Counsellors (HICs) on complaints of misuse of their authority. They were not playing their due role in bringing investment. We appointed 12 new HICs and are processing hiring more, he added. He said it was not easy for Pakistani products to get market access in India. Technically India did not give MFN status to Pakistan as non-tariff trade barriers are there. We are trying to remove these barriers, he added. Copyright Business Recorder, 2014 Energy, infrastructure, SEZs high priority: Pak-China corridor being set up: Miftah March 05, 2014 WASIM IQBAL 0 Comments The government is in the process of issuing licences to companies to negotiate with their Chinese counterparts on construction of energy and infrastructure projects relating to Pakistan China Economic Corridor, Dr Miftah Ismail, Special Assistant to the Prime Minister/Chairman, Board of Investment (BoI) told Business Recorder in an exclusive talk. He said working groups have prepared their recommendations during last nine months for consideration of Pakistan-China Joint Co-operation Committee (JCC). Chinese companies would arrange finance from Chinese banks for the projects. He said governments of China and Pakistan approved in principle the construction of trade corridor from Kashgar to Khunjerab and Gwadar. Economic corridor has three priority areas - energy plants, infrastructure projects and special economic zones. Responding to a question on exemption of Chinese companies from public procurement rules, Miftah said a committee is studying PPRA rules so that suitable amendments could be made in accordance with future requirements. He pointed out that existing PPRA provisions could be observed in case of awarding small contracts but mega projects require more profound rules. The rules will be amended keeping in view the essence of competitiveness, transparency and flexibility which cater to the mega hydropower projects, he added. The government has to hold International Comparative Bidding (ICB) to award contracts under PPRA rules. However, he said these rules are not applicable to government to government economic co-operation. Negating the perception that Pakistan is relaxing PPRA rules for Chinese companies, he said the government of Pakistan negotiated the construction of Economic Corridor with Chinese Government and Chinese Government further outsourced contracts to state owned Chinese companies. When China government is financing any project it leaves no room for PPRA rules to be followed, he maintained. Talking about providing a level play field to foreign investors, Miftah said the government of Pakistan Muslim League (N) is honouring those contracts which were sighed by the previous governments of Pakistan Peoples Party (PPP) and Pervez Musharraf in a bid to improve the confidence of foreign investors in Pakistan. He said that BoI did not receive any substantive complaints from foreign investors on government policies. However, the Board received complaints from power producing companies when the government failed to settle the circular debt. Miftah said a two-member committee has finalised its recommendations on new auto policy which has been prepared in consultant with the stakeholders. Responding to a question on Pak-US Bilateral Investment Treaty (BIT), he said the line ministries showed their reservations on the clause of international arbitration. He stated that currently the BoI is negotiating BIT as well as Free Trade Agreement (FTA) with the US. He admitted that BoI did not have any in-house capacity to negotiate FTA or BIT and would hire legal experts who will assist BoI in reviewing the drafts especially in light of the new BIT template sent by the US Administration. Talking about the Special Economic Zones (SEZs), he said they reviewed the existing laws and found certain ambiguities for example it is not clear whether these zones are SEZs or Export Processing Zones (EPZs). He said SEZs are exempted from custom laws which are applicable outside these zones. He however stated that BoI had approved setting up Khairpur Special Economic Zone (KSEZ) which is being developed in Khairpur District. Miftah said the Investment Policy 2013 and its implementation did not help the previous government achieve investment targets. Foreign Direct Investment (FDI) dropped from $5 billion to $600 million during the four-year tenure of former Chairman BoI. He said BoI is working to make the business environment conducive for foreign investors with special focus on improving Pakistans position in the index of Ease of Doing Business and Global Competitiveness. Replying to another question, Miftah said the Foreign Office terminated 62 Honorary Investment Counsellors (HICs) on complaints of misuse of their authority. They were not playing their due role in bringing investment. We appointed 12 new HICs and are processing hiring more, he added. He said it was not easy for Pakistani products to get market access in India. Technically India did not give MFN status to Pakistan as non-tariff trade barriers are there. We are trying to remove these barriers, he added. Copyright Business Recorder, 2014
Posted on: Wed, 05 Mar 2014 23:10:34 +0000
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