KARACHI: In a historic move, Gilgit-Baltistan government signed its first public private partnership deal with Industrial Promotion Service - a commercial arm of AKDN through its locally registered company NPAK to build first run of the river power project in Hunza district.

Advisor finance, government of Gilgit-Baltistan Waqar Abbas Mondoq told Business Recorder on phone that the project will be completed in 2.5 years with an estimated cost of Rs 1 billion. IPS will provide 100 percent investment for the project, he added.

Waqar said the private sector engagement is pivotal for the development in G-B.

“This is the first run of the river project in G-B and if it gets successful, the government will replicate the future projects on the same model,” he maintained.

He said Gilgit-Baltistan has a potential to produce more than 45,000 MW of hydro electricity. Pakistan’s total electricity demand from both residential and industrial sources is 25,000 MW, if G-B banks on its hydro power potential it can, not only meet all requirement of the country, but will be in a position to export electricity to neighbouring countries.

This milestone will unlock the massive opportunities available in this region, through the private sector led growth model. Gilgit-Baltistan government will facilitate private sector investments in the region.

Due to no legal cover for private sector investments, Gilgit-Baltistan so far didn’t have any large-scale investments.

However, the PPP will now provide legal framework and facilitate large-scale investment in the region.

He said Gilgit-Baltistan is currently relying on 100 percent federal grant, the roll out of PPP will not only strengthen the revenue base of G-B government but will also reduce its dependence and burden on federal government budget.

The advisor finance added that more investment will be routed to the region through PPP mode in tourism and other sectors.

The agreement was signed by Mansoor Dhanani, CEO NPAK (Industrial Promotion Services) & Sajjad Haider (Secretary Water & Power) Govt of G-B a few days back.

The signing ceremony was attended by Chief Minister Gilgit-Baltistan, Chief Secretary Gilgit-Baltistan, Director NPAK IPS, Advisor Finance Gilgit-Baltistan, Additional Chief Secretary Gilgit-Baltistan, and all key officials from both parties.

Copyright Business Recorder, 2020