ISLAMABAD: Pakistan’s Planning Minister Ahsan Iqbal has urged authorities to resolve land and power tariff hurdles reported by a Chinese steel giant in a key special economic zone (SEZ) located in the country’s northwest, state-run media reported this week, amid Islamabad’s intensifying efforts to attract foreign investment in vital economic sectors. 

Spread over an area of 1,000 acres, the Rashakai Special Economic Zone (RSEZ) is a flagship project of the China-Pakistan Economic Corridor (CPEC), a multi-billion-dollar infrastructure project that aims to connect Pakistan’s Gwadar port to China’s northwestern Xinjiang region. 

Pakistani media outlets have reported that China’s Century Steel Group, the primary investor in the RSEZ, has expressed its frustration over the past couple of months at Pakistani authorities for failing to finalize a plot purchase agreement and ensuring power supply for its steel mills operation. 

Iqbal held a meeting with China Century Steel Mills officials during which various issues faced by the investor came up, the Associated Press of Pakistan (APP) reported on Monday. The minister instructed Pakistan’s Board of Investment (BoI), Power Division and the Federal Board of Revenue (FBR) to address the issues hindering industrial development promptly, it said. 

“Specifically, he directed the Khyber Pakhtunkhwa Economic Zones Development and Management Company (KPEZDMC) to confirm land prices to the company at the earliest, by their demands,” it said. 

The KPEZDMC officials briefed Iqbal that the company had requested discounted rates for land per acre. Meanwhile, the Century Steel Group consultant cited examples from China, saying that land there is often provided free of charge to industries in SEZs, APP said. He stressed on the need for similar incentives in Pakistan.

“Addressing concerns over power tariffs, the minister directed authorities concerned to maintain a reasonable distribution margin and ensure that the zone receives power at the same rates as regular consumers,” the state-run media said. 

Iqbal instructed the FBR, Pakistan’s premier revenue authority, to conduct a consumption survey in northwestern Pakistan to estimate anticipated power consumption accurately, APP said. 

Pakistan has increasingly eyed investment from China and other regional allies, particularly from the Middle East, as it seeks to be less dependent on foreign aid and stabilize its economy. 

The South Asian country came close to suffering a sovereign default last year before it clinched a last-gasp $3 billion financial bailout from the International Monetary Fund (IMF). Islamabad has achieved some economic gains since then but Finance Minister Muhammad Aurangzeb has spoken repeatedly of bolstering the country’s economy via long-term financial reforms and international investment.

PESHAWAR: The government of Pakistan’s northwestern Khyber Pakhtunkhwa province said on Monday it was establishing a special force to ensure that a main road in Kurram district remained open, after its blockade since last month following sectarian clashes in the region has triggered a humanitarian crisis.

Kurram, a tribal district of around 600,000 where federal and provincial authorities have traditionally exerted limited control, has frequently experienced violence between its Sunni and Shia communities over land and power. Travelers to and from the town often ride in convoys escorted by security officials. 

The latest feuding started on Nov. 21 when gunmen ambushed a vehicle convoy and killed 52 people, mostly Shias. The assault triggered road closures and other measures that have disrupted people’s access to medicine, food, fuel, education and work. Over 130 people have been killed in the fighting that has ensued after the convoy attack.

The provincial government and Edhi Foundation charity last week started sending medicines to the region via helicopters.

“It has been decided to establish a special police force to secure the Parachinar Road in connection with the restoration of land connectivity to Kurram,” the KP government said in a statement after a cabinet meeting chaired by Chief Minister Ali Amin Gandapur. 

Parachinar is the main town in Kurram and a main road that connects the region to Peshawar, the provincial capital of KP, has been blocked since sectarian fighting began late last month. 

“A total of 399 personnel will be recruited for this new force,” the statement said. “It has been decided to set up temporary posts initially to secure the road, while permanent posts will be set up in the future.”

The statement said the road would be opened after an agreement was reached between the two warring sides. A grand jirga of tribal and political heavyweights was set up earlier this month to convince the two sides to shun violence. The council will resume peace talks later this week. 

Kurram police spokesman Riaz Khan told Arab News on Monday least 136 people had been killed in the violence since last month. If you added those who had died due to lack of access to hospitals and medicines following the road closures, the number reached at least 200, the police officer said. 

Meanwhile, the KP government has launched a helicopter service to evacuate people and transport aid and medicines to Kurran amid the closer of the Parachinar-Peshawar road since last month, triggering a humanitarian crisis with reports of starvation, lack of medicine and oxygen shortages.

On Sunday, two flights evacuated 27 individuals and 16 government staffers and jirga members, according to KP chief minister’s office. Since last week, over 180 people, including women, children and patients, have been transported via helicopter, with priority given to those in need of urgent medical attention.

Last week, KP government spokesman Muhammad Ali Saif said authorities had decided to dismantle private bunkers — observation posts used in the fighting by both sides — and given a deadline of Feb. 1 for tribesmen in Kurram to handover heavy weapons. 

Local tribesmen have so far reportedly refused to surrender their weapons, citing concerns about their safety.