China has refused to agree to a number of Pakistan's proposals to expand cooperation in the areas of energy, water management, and climate change under the China-Pakistan Economic Corridor (CPEC), underscoring the challenges that both sides are facing in deepening their economic ties.
The details of the 11th JCC meeting minutes were recently signed by both sides, highlighting the difference of opinions that led to almost a year's delay in reaching a consensus.
China did not agree to a host of measures that Pakistan had proposed in the areas of energy, water management, climate change, and tourism in Giglit-Baltistan (G-B), Khyber-Pakhtunkhwa (K-P), Azad Jammu and Kashmir (AJK), and the coastal areas.
Pakistan had also proposed the inclusion of Water Resources Management and Climate Change and Urban Infrastructure Development in the CPEC framework, but China rejected these proposals as well.
China also excluded the issue of financial challenges being faced by the power companies from the final minutes. The text related to the financial closing of 701 megawatts (MW) Azad Pattan hydropower project, 1,124MW Kohala power plant, and 1,320MW Thar Block 1 Shanghai Electric Co power plant was dropped from the final minutes.
However, China did agree to advance the Gwadar Power Plant in accordance with the existing plan. Pakistan has also given significant concessions to China on the issue of setting up the 300MW Gwadar Power Plant.
Islamabad wanted to either shelve the 300MW project or change its location to Thar to use the local coal. But China did not agree to Pakistan's text about the Gwadar plant, which had mentioned that "both sides recognised that there was a need to examine the requirement, size, location and fuel type for 300MW Gwadar Power Plant in view of escalating international coal prices, which were resulting in exceptionally high prices of electricity, liquidity and foreign exchange issues for Pakistan and environmental concerns".
Pakistan had also wanted the conversion of the imported fuel-based Gwadar plant to Thar coal to address energy security and liquidity issues to which China did not agree.
The final minutes showed that "both sides agreed to advance the Gwadar Power Plant in accordance with the existing plan".
The signing of the minutes of the 11th JCC meeting is a testament to the strong relationship between Pakistan and China, but it also highlights the challenges that both sides are facing in deepening their economic ties.
