ISLAMABAD: The United Arab Emirates (UAE) and Pakistan are likely to sign a framework on investment cooperation in the energy sector, specifically in the areas of solar, wind, hydro, and power transmission, sources in the SIFC told Business Recorder.

The pact will be signed during the forthcoming visit of caretaker Prime Minister Anwar ul Haq Kakar. He was due to undertake visit to UAE on November 14, 2023, which could not be materialized due to his engagements.

The Ministry of Investment of the United Arab Emirates and Pakistan desire to strengthen the friendly relations that exist between their respective countries and to promote the expansion of bilateral cooperation between the UAE and Pakistan based on the principles of equality, mutual benefit, and full respect of sovereignty, and noting that strengthening the investment cooperation between them will benefit the advancement of bilateral relations and cooperation between the two countries.

Pakistan seeking Middle East investment & tech in energy sector: minister

According to the proposed pact, the purpose of the MoU is to create a framework for investment cooperation in the energy sector, specifically in the areas of solar, wind, hydro, and power transmission between the participants and to facilitate their sharing of technical knowledge, advice, skills and expertise.

Paragraph 2 of the proposed pact, says that the participants will facilitate closer relationships with and between relevant government agencies, sub-national governments, independent regulatory authorities, and private sector enterprises of their respective countries to cooperate in energy projects.

The participants’ cooperation may take the following forms: (i) explore deepening investment partnership through collaborative projects and the promotion and facilitation of investments in Pakistan within the energy sector, specifically in the areas of solar, wind, hydro, and power transmission;(ii) explore potential incentives, which may be required or made available, to support further investment in energy related projects. The participants shall also engage in the exchange of publicly available information relevant to these project; (iii) explore collaboration avenues in the investment, policy research, certification developments, R&D, and innovation in the energy sector; and (iv) other forms of cooperation they mutually decide upon in writing.

The proposed implementation mechanism suggests that UAE may nominate designated entities and/or individuals(s) for the implementation on this Memorandum or certain aspects thereof. Pakistan may nominate designated entities and/or individuals for the implementation of the Memorandum or certain aspects thereof.

Paragraph 4 of pact says that the participants shall keep confidential the information and contents exchanged between the participants in relation to this Memorandum and shall not use any of the confidential information and contents for any purpose other than for the purpose of which such confidential information and contents have been given.

Paragraph 6 explains that the MoU constitutes an expression of the participants’ good faith/intent to engage in the collaboration described herein, subject to confidentiality, and does not create legal rights or obligations that are binding upon the participants.

Paragraph 7 notes that any dispute arising out of the interpretation or application of the MoU shall be resolved by amicable negotiation between the participants.

The Memorandum shall remain in force for a period of two years, and it shall automatically be renewed for a period of two years, unless any of the participants notifies the other Party in writing of its desire to terminate or not to renew this Memorandum.

This Memorandum may be modified at any time in writing with the participants’ mutual consent and may be extended for additional periods.

The participants may discontinue their participation in this Memorandum in writing by mutual consent at any time. A Participant that wishes to discontinue its participation in this Memorandum should endeavour to provide at least six months’ advance notice in writing to other participant.

Copyright Business Recorder, 2023