Tag Archives: Pakistan-China Economic Corridor

Chinese president to visit Pakistan, hammer out $46-billion deal

By REUTERS | MATEEN HAIDER

ISLAMABAD: Chinese President Xi Jinping will launch energy and infrastructure projects worth $46 billion on a visit to Pakistan next week as China cements links with its old ally and generates opportunities for firms hit by slack growth at home.

Also being finalised is a long-discussed plan to sell Pakistan eight Chinese submarines. The deal, worth between $4 billion and $5 billion, according to media reports, may be among those signed on the trip.

Know more: Pakistan to buy eight submarines from China.

Xi will visit next Monday and Tuesday, Pakistan’s foreign office said.

“China treats us as a friend, an ally, a partner and above all an equal – not how the Americans and others do,” said Mushahid Hussain Syed, chairman of the parliament’s defence committee.

Pakistan and China often boast of being “iron brothers” and two-way trade grew to $10 billion last year from $4 billion in 2007, Pakistani data shows.

Xi’s trip is expected to focus on a Pakistan-China Economic Corridor, a planned $46-billion network of roads, railways and energy projects linking Pakistan’s deepwater Gwadar port on the Arabian Sea with China’s far-western Xinjiang region.

It would shorten the route for China’s energy imports, bypassing the Straits of Malacca between Malaysia and Indonesia, a bottleneck at risk of blockade in wartime.

If the submarine deal is signed, China may also offer Pakistan concessions on building a refuelling and mechanical station in Gwadar, a defence analyst said.

China’s own submarines could use the station to extend their range in the Indian Ocean.

“China is thinking in terms of a maritime silk road now, something to connect the Indian Ocean and Pacific Ocean,” said a Pakistani defence official, who declined to be identified.

For Pakistan, the corridor is a cheap way to develop its violence-plagued and poverty-stricken Balochistan province, home to Gwadar.

China has promised to invest about $34 billion in energy projects and nearly $12 billion in infrastructure.

Xi is also likely to raise fears that Muslim separatists from Xinjiang are linking up with Pakistani militants, and he could also push for closer efforts for a more stable Afghanistan.

Earlier, the Foreign Office (FO) on Thursday announced that Chinese President Xi Jinping will be visiting Pakistan from April 20 to April 21 on a two-day state visit.

“I can confirm that the Chinese president will be visiting Pakistan from April 20 to 21,” FO spokesperson Tasneem Aslam said during a weekly media briefing in Pakistan.

Continue reading Chinese president to visit Pakistan, hammer out $46-billion deal

Pakistani farmers struggle to switch to solar powered pumps

By Aamir Saeed

Amid Pakistan’s growing energy crisis, farmers are being encouraged to switch from diesel to solar powered water pumps, but few can afford the initial costs

Arshad Khan recently converted his diesel-operated water pump to solar energy to save money on his monthly diesel bill. He grows wheat, vegetables, peanuts and sugar-cane on his 18 hectare farm in Attock district of Pakistan’s Punjab province.

“In April last year I decided to convert my tube well to solar energy after my diesel costs rose to 29,000 rupees (US$287) per month,” he said.

In Pakistan, there are over 1.1 million agriculture tube wells, with only 30% of them operated by electricity.

As the country faces a growing energy crisis, farmers are left with no option but to switch from diesel to solar energy to irrigate their crops. Tube wells consume around 2,000 million litres of diesel every year.

Khan is now encouraging other farmers in the area to install solar panels, pointing out the long-term economic benefits despite the initial expenditure of 1.8 million rupees (US$17,827).

National solar drive?

Pakistan’s government recently approved the use of grid-connected solar energy and rooftop solar installations and cut import taxes on solar equipment in a bid to boost solar power across the country.

In the next few months, Pakistan will add 100MW from the Quaid-e-Azam solar park in Punjab province to the national grid for the first time, with an additional 50MW to be added within a year. The project is part of Pakistan-China Economic Corridor, under which China will invest US$33 billion including in the energy and power sector.

But the country’s solar sector has a long way to go. “At the moment, generation of solar energy in the public sector is zero as all the projects are being done in the private sector,” said Asjad Imtiaz Ali, CEO of the Alternative Energy Development Board, a government organisation.

Chairman of Pakistan Solar Association, Faiz Muhammad Bhutta, recently urged the government to do more to spread solar power: he called for a 20,000-MW solar target by 2026, following the example of India’s National Solar Mission.

Despite plummeting oil prices, Asjad Imtiaz Ali believes Pakistan should continue to develop its renewable energy sector as a way of reducing its reliance on volatile fossil imports for electricity.

Almost half of Pakistan’s total electricity generation comes from expensive thermal energy sources and this means electricity prices have become unaffordable, according to the country’s 2013 National Power Policy.

Solar is the most viable and reliable energy source for agriculture, argues Dr Qamar-uz-Zaman, climate change and renewable energy expert with LEAD Pakistan, an NGO based in Islamabad. He believes farmers across the country should be encouraged to convert their diesel-operated water pumps to solar energy.

“Agriculture tube wells can be operated directly from solar panels as no batteries are required to store the energy for them,” Dr Qamar-uz-Zaman said, adding farmers can recover costs within three to four years by saving on diesel and electricity bills.

Read more » The Third Pole
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