In a positive economic development, $4 billion to be injected in Pakistani economy
ISLAMABAD: Minister for Energy Omar Ayub Thursday said that Saudi Arabia would bring an investment of $ 4 billion for building a power plant in Balochistan.
He revealed generation of electricity from solar and wind projects would get a boost with the new alternative energy development policy, resulting in reduction of electricity rates to as low as Rs six per unit in future and saving of precious foreign exchange reserves presently spent on fuel import.
Talking to APP, he said, “the wind and solar projects will help reduce the rate of electricity to Rs 6 per unit and the rate will go down even further in future."
Pakistan Muslim League (N) government generated electricity from liquefied natural gas at the rate of Rs 17 per unit, he added.
The minister said all stakeholders including the provinces had agreed on the policy and its implementation would be undertaken by a steering committee at the federal level and by provinces and Alternative Energy Development Board (AEDB).
The provinces would provide land for the solar and wind projects, he continued.
He went on to say that international companies were coming for investment in the solar and wind projects. The companies would not only generate power but would also manufacture wind turbines and solar panels in the country.
The investment would give impetus to the industrial sector, create jobs in manufacturing and technology transfer would take place. The government was working to improve the electricity grid structure, he explained. He said the alternative energy policy was a revolutionary step of the government. Prime Minister Imran Khan had taken personal interest in the policy and also guided the ministry, he added.
Secretary Power Irfan Ali and Special Assistant to Prime Minister on Petroleum Nadeem Babar and others were focusing on the policy implementation. The policy would be implemented through competitive bidding resulting in reduction of project cost.
He said Pakistan had investment potential of $ 40 billion in the sector of alternative energy. Pakistan in future could produce 75 percent of electricity from its own indigenous sustainable resources without importing fuel like oil and gas which in turn would save the government's financial resources, strengthen value of the rupee and cut the current account deficit.
Private companies from Japan, the United States, China and Denmark would invest
$ 70 million in projects of 500 megawatts, he said adding results of the policy would start appearing in the year 2021. Saudi Arabia would bring an investment of $ 4 billion for building a power plant in Balochistan, he added.