Lahore: Pakistan's Punjab province government has formally launched the 'Wagah Joint Check Post Expansion Project' along the international border with India. According to the Pakistani government, the project aimed to increase the sitting capacity from 8,000 to 24,000. The cost of the project is PKR 3 billion and the deadline for its completion is December 2025. The project is reportedly launched to match the sitting capacity of the Indian side.
"The project was signed in February, but the work on the ground has been accelerated now," the official of the Punjab government said. In addition to sitting capacity, he said that a state-of-the-art historical museum showcasing the history of the Wagah border, waiting lounges and green rooms for the VVIPs would also be constructed. The security arrangements will also upgraded.
Under the project, the height of the flagpole, which is the world's fifth tallest, will be increased from 115 to 135 meters, making it the world's third-highest flagpole. The flagpole would also be relocated since the existing one is off-centre.
Pakistan economic crisis
Notably, Pakistan, which has been facing an economic crisis for the past three to four years, is facing multi-dimensional poverty, wherein the citizens are not even getting the basic essentials to live properly. The food inflation had once surged to 48 per cent and then eased to 38 per cent in May.
The government has been pleading to the International Monetary Fund (IMF) for a bailout package. Ironically, the mega project was relaunched on the same day when it accepted the IMF's condition that it would not establish any new special economic or export processing zone in the country as it waits for the approval of a USD 7 billion bailout package from the international money lender.
Pakistan promises IMF to not create any economic zone: Report
The Washington-based lender’s condition will impact the government’s plans to establish an export processing zone (EPZ) on a piece of land belonging to the closed Pakistan Steel Mills, The Express Tribune newspaper reported. The report quoted government sources as saying that the IMF had asked Pakistan that it would not create any new special economic zone (SEZ) or EPZ and tax incentives already availed by the existing zones will not be extended after expiry.
While the condition will be applicable to both federal and provincial governments, Khyber Pakhtunkhwa has refused to accept it, the report said. The IMF’s conditions underscore how deeply it has captured Pakistan's economic and industrial policies, which could adversely impact its future growth prospects and the desire to bring Chinese industries to these zones, the newspaper reported.
IMF bailout package
Despite Pakistan imposing a record Rs 1.8 trillion in new taxes and hiking electricity rates by up to 51 per cent, it has so far failed to secure a date for the approval of the USD 7 billion bailout package.
Talks for the Extended Fund Facility (EFF) began in May this year and it culminated with a staff-level agreement in early July. But despite the lapse of two months, there is no clarity about the date of IMF's executive board meeting. SEZs and EPZs are entitled to special facilities and tax incentives aimed at encouraging businesses to establish clusters of commercial activities.
Last month, China, Saudi Arabia and the UAE agreed to roll over Pakistan's USD 12 billion debt for one year.
(With inputs from agency)
ALSO READ: Pakistan: Flour selling at 800 per kg, cooking oil at 900 per litre but govt aims to boost nuclear weapons
Latest World News
