KARACHI: The China-Pakistan Economic Corridor (CPEC) still remains functional despite the recent outbreak of coronavirus in the region that has claimed about 170 lives, officials said on Friday.
“Pakistan has taken steps, including screening of the incoming passengers from China, to prevent the spread of virus in the country,” Senator Kauda Babar, member of Senate’s Standing Committee on CPEC, told Arab News on Friday.
The senator hails from Pakistan’s southwestern Balochistan province that is highly significant for the multibillion dollar corridor project due to the deep-sea port in Gwadar.
“As far as CPEC is concerned, those who are working on the project are in Pakistan and those who are arriving from China will be properly screened,” he added.
“Only 10 to 15 percent people working on the project may be traveling, and they are not necessarily from Wuhan. The situation has not impacted the corridor project,” Babar said.
Experts believe, however, that the coronavirus outbreak in China may impact Pakistan’s economy, slowing down the Chinese-funded projects.
“The Chinese economy itself is likely to suffer from the outbreak and that is likely to create a similar impact on the projects being done in Pakistan. At least, the contagion can cause delays for a brief period,” Mazhar Ali Nasir, patron-in-chief of the Pakistan-China Business Council, told Arab News. “People will remain cautious while traveling to china for business and tourism purposes for at least three to six months.”
The aviation authority in the country on Wednesday stalled direct flights between Pakistan and China. “All direct flights between Pakistan and China are to be stalled on immediate basis, initially till February 2, 2020, subject to subsequent review,” a Civil Aviation Authority (CAA) notification read.
In another move, the country’s Port Health Establishment department directed customs authorities to abstain from clearing cargo without fumigation.
“The second hand clothing/used shoes and other worn articles should not be cleared without fumigation under the supervision of Port Health Establishment Karachi till further orders,” a notification issued on Friday read.
Chinese health authorities confirmed 7,711 cases of coronavirus in the country on January 29 while the death toll from the outbreak went above 170. Chinese authorities trying to contain the virus are optimistic about providing the vaccine within the next three months.
Experts say, however, that the impact of the deadly coronavirus on the Chinese economy could also slow down the global economy.
“The real scenario will emerge after the end of the extended nationwide holidays in China next week. The economic impact would be higher if China further extends the break,” Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Khurram Ijaz commented.
Pakistan has imported goods worth $4.88 billion from China during the first six months of the current fiscal year (FY20), the State Bank of Pakistan reveals.
Chinese workers on CPEC projects 'properly screened' — officials
https://arab.news/4txnu
Chinese workers on CPEC projects 'properly screened' — officials
- Government stalls direct flights between Pakistan and China, makes fumigation of cargo mandatory
- Experts say the Chinese economy is likely to suffer due to the pandemic
Pakistan raises fuel prices by Rs55 per liter as Middle East conflict drives oil surge
- Government says adequate fuel stocks in place despite global energy shock
- Oil prices jump from about $78 to over $106 per barrel amid regional conflict
ISLAMABAD: Pakistan on Friday increased petrol and diesel prices by Rs55 ($0.20) per liter each as escalating conflict in the Middle East sent global oil prices sharply higher and disrupted energy supply routes, officials said.
Global oil markets have been rattled since coordinated strikes by the United States and Israel against Iran began last week, triggering retaliatory attacks across the region, raising fears of disruption to key energy shipping routes and pushing petroleum prices sharply upward.
The price adjustment in Pakistan was announced after a joint press conference by Finance Minister Muhammad Aurangzeb, Deputy Prime Minister and Foreign Minister Ishaq Dar and Petroleum Minister Ali Pervaiz Malik, who said the government was monitoring international energy markets and domestic supply conditions amid the crisis.
“So, the decision we have made by changing the levy a little bit is that we are going ahead with increasing the price of both fuels, petrol and diesel, by Rs55 ($0.20),” Malik told reporters.
“And as soon as this matter settles, we will revise the prices downward with the same speed and take steps on how to increase people’s income and purchasing power.”
He said Pakistan entered the crisis with “comfortable energy reserves” due to earlier planning but rising global prices had forced the government to adjust domestic fuel rates to maintain supply continuity.
He said international petrol prices had climbed from roughly $78 per barrel on March 1 to around $106.8 per barrel, while diesel prices had risen to about $150 per barrel.
Malik added that the government had taken steps to minimize the burden on consumers, noting diesel plays a critical role in agriculture, transportation and public mobility.
Malik also warned that authorities would take strict action against anyone attempting to hoard fuel or manipulate supply for profiteering.
The minister said Pakistan was working with international partners to secure additional energy supplies, including arrangements with Saudi Aramco and the use of Pakistan National Shipping Corporation vessels to transport crude oil imports.
Finance Minister Aurangzeb said a high-level government committee formed by Prime Minister Shehbaz Sharif had been meeting daily to review developments in global petroleum markets and their potential impact on Pakistan’s economy.
“Pakistan currently maintains adequate energy stocks and macroeconomic stability,” Aurangzeb said, adding that the government’s response was based on preparedness rather than panic.
He said the committee, which includes senior ministers, the governor of the State Bank of Pakistan and other officials, was assessing short-, medium- and long-term implications of the crisis for inflation, foreign exchange reserves and broader economic indicators.
Deputy PM Dar said the regional conflict had significantly disrupted global energy markets, with international petroleum prices rising by as much as 50–70 percent in recent days.
The deputy prime minister added that Pakistan was also engaged in diplomatic efforts aimed at de-escalating tensions and restoring stability in the region.
Petroleum prices will now be reviewed more frequently, potentially on a weekly basis, and any reduction in global oil prices would be passed on to consumers.
Pakistan, which relies heavily on imported fuel to meet its energy needs, is particularly vulnerable to global oil price shocks that can quickly feed into inflation and pressure the country’s external accounts.
