The Economic Coordination Committee (ECC) plans to include the extension of the lease to Chinese contractors of the Saindak copper-gold project and the revival of the tax concessions to Chinese power producers in an effort to attract investments into the second phase of the China-Pakistan Economic Corridor (CPEC). Besides the copper-gold project, the ECC also considers a payment plan for public sector power producers as part of the revised tariff agreement of 2020.
The decision has been criticized by the provincial government on grounds that the 25% of the net profit sharing along with royalties and duties is unfavourable to Baluchistan. The provincial government owns 35% of the project which entitles it to a higher percentage.
CPEC is one of the biggest long-term development projects of Pakistan, worth 62 billion USD. Several Chinese companies have invested in this long-term project and in return, Pakistan has promised lucrative Return on Investments (ROIs) rates. The provision of the extension of the lease to Chinese contractors will attract more investments.
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