According to the Ministry of Planning, Development and Reform, CPEC is now entering its next phase with the incorporation of additional areas, including trade and market access, industrial cooperation, socioeconomic development, poverty alleviation, agriculture, Gwadar development and blue economy, regional connectivity and third country participation. Hence, a new management entity is needed. In a meeting held on held on May 20, 2019 chaired by the Prime Minister it was decided to establish the CPEC Authority. On August 26, 2019, during a meeting of Cabinet Committee on CPEC (CCoCPEC), Advisor to the Prime Minister on Institutional Reforms and Austerity, Dr Ishrat Hussain supported the idea of setting up an Authority however he expressed concerns over the massive size of the Authority and suggested that a smaller Authority can be more effective and manageable. And services of thorough professionals, well-experienced and qualified personnel may be acquired for smooth functioning of the Authority.
Advisor to the Prime Minister on Commerce, Textile, Industry and Production and Investment, Abdul Razak Dawood also suggested a leaner set up for the Authority. The Authority will consist of a chairman, two executive directors and six members for a period of four years to be appointed by the Prime Minister of Pakistan. The entire top team of the proposed Authority shall be eligible for re-appointment for similar term.
The proposed powers and functions of the Authority are as follows: (i) in addition to such other powers and functions as may be assigned under this Ordinance and rules, the Authority shall be primarily responsible for coordination, monitoring, evaluation and ensuring implementation of CPEC-related activities. The Authority shall exercise its powers and perform its functions in line with the framework and MOU signed between Pakistan and China, provided that the federal government may, from time to time, assign more functions and issue guidelines; (ii) the Authority will interface with China for identifying new areas of cooperation projects and organize meetings with Joint Cooperation Committee and Joint Working Groups (JWGs); and (iii) it will ensure inter-provincial and inter-ministerial coordination for CPEC activities, in addition to narrative building and communication about CPEC related activities and conduct sectoral research for informal decision making and long-term planning.
The Chairman, and Executive Director and a Member may resign from office by writing in his/her hand addressed to the Prime Minister. The Prime Minister may remove the chairman, executive directors or members from office, if on an inquiry conducted under the order of the Prime Minister, he/she is found inefficient or unable to perform the functions of his office due to mental or physical disability or for misconduct.
On September 17, 2019, Federal Cabinet considered the decisions of the CCLC regarding establishment of a CPEC Authority through an Ordinance. Some of the Cabinet members raised questions on some of the clauses of the proposed Ordinance.
"In the matter of establishment CPEC Authority, it was pointed out that the proposed administrative structure had anomalies, such as provision for a Chairman and two Executive Directors, the provision on conflict of interest were contradictory, immunities had been extended to everyone and unfettered powers to make regulations were being granted to the Authority. It was therefore, suggested that the proposal be further examined before finalization," the sources added.
After hearing viewpoints of different Cabinet members, the Cabinet approved, in principle, the recommendation of CCLC with regard to the proposed CPEC Authority subject to fine-tuning by the committee comprising Minister for Law, Minister for Planning, Development and Reform, Minister for Parliamentary Affairs, Minister for Railways, Minister for Maritime Affairs and Special Assistant to Prime Minister on Social Protection and Poverty Alleviation, of the proposed legislation, especially the provisions relating to administrative structure, conflict of interest, immunities and powers to make regulations. The final report will be shared with Prime Minister's office by next week.
