A private firm's $100 million plan of setting up maize-based ethanol generation plant near Port Qasim Karachi has been not been implemented so far. Sources in Sindh government told Business Recorder on Monday that poor law and order and political instability in the country had put the project in doldrums, as the foreign investor company is reluctant to invest here in such circumstances.
Without naming the investor firm, sources said that the company had shown interest in developing energy by alternative resources about a year back. On its request, the government had asked the Alternative Energy Development Board (AEDB) to see the possibility of setting up the plant near Port Qasim.
The firm was also in close contact with the Board of Investment (BoI) and Planning Commission (PC) to remove financial and legal hitches in implementing the proposed project. The AEDB had started work on the feasibility of the project in collaboration with the Swiss firm, but later the work had been ceased due to unknown reasons, sources said.
They said that the project had been stopped, as the firm was reluctant to invest in view of the political uncertainty and deteriorating law and order. The firm also intended to invest, on a large scale, in several projects of oil and gas sector. They were also put on hold by the firm's stance to remain apart from investing in Pakistan, sources added.
Sources were of the view that the present law and order situation and political instability of the country is putting barriers in the way of foreign investments. It may be pointed out that Sindh Alternative Energy department had also proclaimed to set up a $110 million ethanol plant, but the project was still on paper, owing to indifference of the concerned officials.
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