Pakistan government has set an ambitious tagret of around $20 billion as foreign investment in the energy sector, for which it is actively interacting with top companies in the USA. Highlighting the salient features of the upcoming energy conference.
The Minister of Information, Sherry Rehman, told Business Recorder that the international energy roundtable would be instrumental in attracting maximum foreign investment in the energy sector through institutional and legal support to foreign investment.
Top power companies of the world would participate in the conference to explore possibilities for making investment in Pakistan. Besides coal and hydro power projects, the international energy roundtable would also discuss gas pipeline projects as well.
She said that the global increase in the prices of POL products was a major challenge for Pakistan along with other countries of the world. Globally, consumers' tariffs are being increased along with reduction in subsidies. This has substantially increased the importance of coal as an alternative soruce of energy in the country, she added.
As the previous regime was unable to provide a clear roadmap for investment in energy sector, the present government is committed to encourage investment in the energy sector, particularly coal sector. There was no framework or policy available for foreign investors to attract investment in energy sector.In view of the situation, the coming conference is being organised by the World Bank on July 29.
Besides institutional and legal support, an effective international dispute resolution mechanism is necessary to give legal protection to the foreign investors in the energy sector. She said that 21 countries are participating in the global energy conference which would give an opportunity to foreign investors to give suggestions on increasing investment in alternative sources of energy particularly coal. There is need for more aggressive policy for attracting investment in hydro power projects and coal as alternative sources of energy in future, she said.
In the past, around $6 billion foreign investment has been witnesed in the energy sector. However, the government is likely to attract foreign investment of nearly $20 billion in the energy sector by arranging such kind of international conferences.
Referring to a 1000 mega watts power project, she said that three times more bids have been received for this huge project, reflecting foreign investors' interest in Pakistan's projects. The government would also convene a US-Pak economic dialogue in August and a joint council under trade and investment framework would be held in September 2008.