HAFEEZ SHAIKH ASSURES FULL SUPPORT TO CHINESE COMPANY  FOR COAL MINING & 250 MW ENERGY PROJECT

Islamabad, August 02, 2005

A five member Chinese delegation from China National Machinery Import & Export Corporation (CMC) led by CMC Vice President Mr. Shan Wei currently visiting Pakistan held a meeting with Dr. Abdul Hafeez Shaikh Federal Minister for Privatisation & Investment here today.

The Minister while appreciating the CMC's keen interest in Pakistan's mineral and energy projects said that Pakistan's coal mining area was so far under explored as in the world 38 % energy was being produced out of coal whereas in Pakistan the ratio was 1 %. There existed tremendous scope for investors in both coal mining and power generation projects in Pakistan, which would be beneficial for Pakistan's future and would increase the use of this indigenous fuel to produce energy and to operate other various industries as it was done in the cement industry, he said.

Dr. Hafeez Shaikh assured the delegation of full support and assistance in undertaking first time in Pakistan a large scale energy project on BOO basis, by one of the largest State company CMC of China, being developed near Karachi at Sonda-Jherruk in Sindh province and stated that the Chinese people were very close to the hearts of Pakistani people and investment from China was always welcomed. The government of Pakistan was taking all steps to encourage and attract foreign and local investors without any distinction between them and providing a level playing field, he added.

He further stated that 31 Chinese companies were successfully operating in Pakistan in the Oil & Gas, IT, Telecom, Power Generation, Engineering, Automobiles, Infrastructure and Mining sectors and noted that during the last three years investment from China has increased, which needed to be enhanced through serious, committed efforts by the private sector of both the countries keeping in view our long term relations.

The leader of the delegation informed the Minister that a Memorandum of Understanding (MOU) has been signed with the Sindh Coal Authority of Government of Sindh by CMC with TASAQ International (Pvt) Ltd as Sole representative & cooperation party, which envisaged carrying out exploration at site and completion of detailed feasibility for one million tons coal mine and a 250 MW Power House within 18 months at a cost of US $: 03 million. The project is included in the Agenda of the Joint Economic Commission between China and Pakistan.

The delegation lauded the economic reforms undertaken by Pakistan under the leadership of President General Pervez Musharraf and Prime Minister Shaukat Aziz and said that there existed vast potential for Chinese companies to invest in various sectors of Pakistan's economy. He stressed upon the investors of both the countries to work together to explore new avenues and opportunities to enhance the existing bilateral trade and investment relations while ensuring the transfer of technology.