Energy sector has scope for $40bn investment: Omar Ayub

FAISALABAD: Minister for Energy Omar Ayub Khan Thursday said that there was a vast scope of investing US$40 billion in the energy sector in the country and Prime Minister Imran Khan was determined to resolve issues pertaining to the energy sector, especially for the industrial sector in the country.

He was addressing the inaugural ceremony of 132KVA grid station and one window counter for industrialists at M3 industrial City near here.

Chairman National Standing Committee for Finance, Revenue & Economic Affairs Faiz-ullah Kamoka, MNA Asim Nazir, Provincial Minister for CM Inspection Team Muhammad Ajmal Cheema and a large number of industrialists and notables of the area were present.

He said that the government's top most priority was to ensure smooth supply of electricity and gas to the industrial sector in the country.

He said that availability of all basic facilities including electricity and gas at the industrial estates is must to attract foreign investment in the country. He said that Prime Minister Imran Khan was keen in development and progress of the economy as well as the country.

He wanted rule of law, respect for all segments of society, peace and a respectable source of income for people in the country, the minister added.

He said that the government was facilitating the industrial sector through all means for development of the country. Although, strategic location of the country was very important, foreign investors demand facilities before investment, he added.

He said that Pakistan had the capacity of US$600 billion GDP, adding that in Islamic economies, Saudi Arabia has the biggest size of GDP of US$800 billion. He said that the country's economy could flourish by promoting agriculture, the services sector and industry.

He said that by the year 2030, 60 per cent energy would be generated from the solar system, wind, bio-gas, 10 per cent gas, 10 per cent nuclear, 10 per cent coal and remaining 10 per cent from local sources.

He said that an increase of Rs 1.95 per unit in electricity had become mandatory as the government had provided subsidy of Rs 650 billion in electricity in one year due to COVID-19.

The minister also urged producing a skilled workforce to meet the demands of the industrial sector, adding that skilled labour was behind the speedy development of China.

“We can also overcome the issue of unemployment in the country by imparting training of our labour”, he added. He said that Sialkot, Gujranwala and Faisalabad districts had become economic hubs of the country.

He said that 70 per cent electricity was being produced from imported fuel from other countries due to which people were facing difficulties.

He said that the government had brought down the price of renewable energy (solar energy) to Rs 6.50 per unit from previous rate of Rs 22 per unit.

Earlier, talking to the media, the minister said that foreign investment in industrial estate had been recorded at US$1.25 billion. The government measures were improving the confidence of investors by providing them facilities like gas, electricity in industrial estates which is imperative for attracting local and foreign investment in the country, he said.

When PPP government ended, the foreign reserves in the country were for two months, but the PML-N government left the foreign reserves only for two weeks, he said adding that the capacity (compulsory) payments in 2013 were Rs 185 billion, in 2018 those payments were Rs 1650 and in 2020 the capacity payment risen to Rs 1860 billion.

The minister also assured the local parliamentarians of meeting their demands and redressing their issues pertaining to the energy sector.