Chinese help to Pakistan: A debt trap for Pakistan

List of agreements signed between Pakistan and China during President Xi’s visit to Pakistan in 2015. Both countries signed agreements worth $28 billion to immediately kick-start early harvest projects, while projects worth $17 billion, which are in the pipeline, will follow as soon as the required studies, processes and formalities are completed. The groundbreaking and signing of financial agreements has demonstrated that there is a strong will on both sides to implement the portfolio of $45 billion agreed under the CPEC framework as early as possible to help Pakistan meet its energy needs. The agreements and MOUs signed are as under:

List of agreements/Mou(s)-2015

1. Joint Statement between the People’s Republic of China and the Islamic Republic of Pakistan on establishing the all-weather strategic cooperative partnership.
2. Minutes of the 4th JCC of China-Pakistan Economic Corridor.
3. Economic and Technical Cooperation Agreement between the Government of the People’s Republic of China and the Government of the Islamic Republic of Pakistan.
4. Exchange of Notes of feasibility study of the Demonstration Project of the DTMB between the Government of the People’s Republic of China and the Government of the Islamic Republic of Pakistan.
5. Exchange of notes on provision of Anti-Narcotics Equipment between the Government of the People’s Republic of China and the Government of the Islamic Republic of Pakistan.
6. Exchange of notes on provision of Law Enforcement Equipment between the Government of the People’s Republic of China and the Government of the Islamic Republic of Pakistan.
7. Exchange of Notes on Feasibility Study of Gwadar Hospital between the Government of the People’s Republic of China and the Government of the Islamic Republic of Pakistan.
8. MOU on provision of Chinese Governmental concessional Loan for second phase up-gradation of Karakorum Highway (Havelian to Thakot) between Ministry of Commerce of the People’s Republic of China and Ministry of Finance and Economic Affairs of the Islamic Republic of Pakistan.
9. MOU on provision of Chinese Governmental concessional Loan for Karachi-Lahore Motorway (Multan to Sukkur) between Ministry of Commerce of the People’s Republic of China and Ministry of Finance and Economic Affairs of the Islamic Republic of Pakistan.
10. MOU on provision of Chinese Governmental concessional Loan for Gwadar port East Bay Expressway Project between Ministry of Commerce of the People’s Republic of China and Ministry of Finance and Economic Affairs of the Islamic Republic of Pakistan.
11. MOU on provision of Chinese Governmental concessional Loan for Gwadar International Airport between Ministry of Commerce of the People’s Republic of China and Ministry of Finance and Economic Affairs of the Islamic Republic of Pakistan.
12. Protocol on Banking Services to Agreement on Trade in Services between the Government of the Islamic Republic of Pakistan and the Government of the People’s Republic of China.
13. MOU on provision of Material for Tackling Climate Change between National Development and Reform Commission of the People’s Republic of China and Ministry of Finance (EAD) of the Islamic Republic of Pakistan.
14. Framework Agreement on Cooperation on Major Communications Infrastructure Project between the Government of the People’s Republic of China and the Government of the Islamic Republic of Pakistan.
15. MOU on Cooperation between NDRC of the People’s Republic of China and ministry of Planning Development and Reform of the Islamic Republic of Pakistan.
16. MOU on Pro Bono Projects in the Port of Gwadar Region between Ministry for Planning, Development and Reform of the Islamic Republic of Pakistan and the International Department of the Central Committee of the Communist Party of China.
17. MOU on establishment of China-Pakistan Joint Cotton Bio-Tech Laboratory between the Ministry of Science and Technology of the People’s Republic of China and the Ministry of Science and Technology of the Islamic Republic of Pakistan.
18. Framework Agreement between the National Railway Administration, Government of the People’s Republic of China and the Ministry of Railways, Government of the Islamic Republic of Pakistan on Joint Feasibility Study for up-gradation of ML1 and Establishment of Havelain Dry port of Pakistan Railways.
19. Protocol on the Establishment of China-Pakistan Joint Marine Research Center between State Oceanic Administration of the People’s Republic of China and the Ministry of Science and Technology of the Islamic Republic of Pakistan.
20. MOU on cooperation between the State Administration of Press, Publication, Radio, Films and Television of China and Ministry of Information, Broadcasting and National Heritage of Pakistan.
21. Triple Party Agreement between China Central Television and PTV and Pakistan Television Foundation on the re-broadcasting of CCTV-NEWS/CCTV -9 Documentary in Pakistan.
22. Protocol on establishment of Sister Cities Relationship between Chengdu city Sichuan Province of PRC and Lahore City.
23. Protocol on establishment of Sister Cities Relationshipbetween Zhuhai City, Guangdong province of the People’s Republic of China and Gwadar city, Balochistan of the Islamic Republic of Pakistan.
24. Protocol on establishment of Sister Cities Relationship between Karamay City, XianjianUgur, autonomous region of the People’s Republic of China and Gwadar city, Balochistan of the Islamic Republic of Pakistan.
25. Framework Agreement between NEA and MoPNRon Gwadar-Nawabshah LNG Terminal and Pipeline Project.
26. Commercial Contract on Lahore Orange Line Metro Train Project.
27. Agreement on financing for Lahore Orange line Metro Train project.
28. MOU on financing for KKH up-gradation Phase-2 (Havelian to Takot), KLM, Gwadar East Bay Expressway, Gwadar International Airport Projects.
29. Financing Agreement relating to the 870 MW Hydro-Electric Suki Kinari Hydropower Project between EXIM Bank of China, Industrial and Commercial Bank of China Limited and SK Hydro (Private) Limited.
30. Financing Cooperation Agreement between the EXIM Bank of China and Port Qasim Electric Power Company (Private) Limited (on Port Qasim 2x660MW Coal-fired Power Plant).
31. Framework Facility Agreement for 720MW Karot Hydropower Project between China Development Bank Corporation, EXIM Bank of China and Karot Power Company (Private) Limited.
32. Term Sheet of the facility for Zonergy 9×100 MW solar project in Punjab between China Development Bank Corporation, EXIM Bank of China and Zonergy Company limited.
33. Drawdown Agreement on Jhimpir wind Power project between UEP Wind power (Private) Limited as Borrower and China Development Bank Corporation as lender.
34. Terms and Conditions in favor of Sindh Engro Coal Mining Company for Thar Block II 3.8Mt/a mining Project, Sindh province, Pakistan Arranged by China Development Bank Corporation.
35. Terms and Conditions in favor of Engro Powergen Thar (Private) Limited, Sindh province, Pakistan for Thar Block II 2x330MW Coal Fired Power Project Arranged by China Development Bank Corporation.
36. Framework Agreement of Financing Cooperation in Implementing the China-Pakistan Economic Corridor between China Development Corporation and HBL.
37. MOU with respect to Cooperation between WAPDA and CTG.
38. MOU among PPIB, CTG, and Silk Road Fund on Development of Private Hydro Power Projects.
39. Facility operating Agreement for Dawood Wind Power project between ICBC and PCC of China and HDPPL.
40. Framework Agreement for Promoting Chinese Investments and industrial Parks Developments in Pakistan between ICBC and HBL on financial services corporation.
41. The financing term sheet agreement for Thar Block –I between ICBC, SSRL.
42. Energy Strategic Cooperation Framework Agreement between Punjab Province of Pakistan and China Huaneng Group.
43. Framework Agreement on the China Pakistan Economic Corridor Energy Project Cooperation between Ministry of Water & Power and China Export & Credit Insurance Corporation (SINOSURE).
44. Cooperation Agreement between Sino-Sindh Resources (Pvt.) Ltd and Shanghai Electric Group for Thar Coalfield Block I Coal-Power integrated Project in Pakistan.
45. Cooperation Agreement for Matiyari-Lahore and Matyari (Port Qasim)-Faisalabad Transmission and Transformation Project between National Transmission Distribution Company (NTDC) and National Grid of China.
46. IA on Port Qasim Coal fired Power Plant between Power China and GoP.
47. Facility Agreement for the Sahiwal Coal-fired Power Plant Project between industrial and Commercial Bank of China Limited, Huaneng Shandong Electricity limited and Shandong Ruyi Group.
48. Cooperation Agreement on Hubco Coal-fired Power Plant Project between CPIH and Hubco Power Company.
49. Facilitation Agreement on Salt Range Coal-fired Power Project between CMEC and Punjab Government.
50. MOU between NUML Pakistan and Xinjiang Normal University, Urumqi China for Cooperation on Higher Education.
51. Agreement on collaboration on establishment of NUML International Center of education (NICE) between NUML Pakistan and Xinjiang Normal University, Urumqi, China.

The following projects were inaugurated in an unveiling ceremony.

Unveiling of plaques

1. Industrial and Commercial Bank of China, Lahore Branch.
2. Energization of 100 MW solar power plants at Quad-i-Azam solar park, Bahawalpur.
3. FM 98 Dosti Channel studio PBC-CRI, Islamabad.
4. Demonstration project of DTMB Broadcasting in Pakistan.
5. China Cultural center Pakistan.
6. China-Pakistan Joint Research Center for small hydropower, Islamabad.
7. China-pakistan cross-border optical fiber cable system project.
8. Metro rail transit system on the Orange Line in Lahore.

The inauguration of the following power projects was jointly done by Prime Minister Nawaz Sharif and President Xi Jinping via video link at Prime Minister Office.

Ground breaking of power projects

1. Karot 720 MW Hydropower project.
2. Dawood 50 MW Wind-power project.
3. Sachal 50 MW Wind-power project.
4. Zonergy 900 MW solar project.
5. Jhimpir 100 MW Wind-power project.

Note: Prime Minister Imran Khan and Chinese premier Li Keqiang on November 2018 signed another set of 15 agreements and memorandums of understanding (MoUs) for cooperation in different fields.