ISLAMABAD: Pakistan’s energy sector is flourishing like never before, as itis offering around $60 billion worth of investment opportunities in itsrenewable energy generation, transmission and distribution system.
“The petroleum sector also offers huge oil and gas explorationopportunities in around 40 new sites, auctions for which will be conductednext month,” said Power and Petroleum Minister Omar Ayub Khan in a meetingwith German Ambassador Bernhard Schlangheck on Friday.
Special Assistant to Prime Minister on Petroleum Nadeem Babar was alsopresent on the occasion.
Apprising the German ambassador on the new renewable energy policy, theminister said for the first time, the provinces have been given a leadingrole in both decision making regarding new renewable energy projects aswell as in their implementation.
“For this purpose, a steering committee having due representation of allprovinces has been envisaged by the Alternative Energy Development Board(AEDB),” he said. “The government has formulated a 25-year power generationand transmission plan in order to ensure the commissioning of newelectricity projects in the country.”
Meanwhile, Nadeem Babar informed the German envoy that a multi-year auctionof bulk renewable energy projects is under consideration on a competitivebidding basis. “It will be beneficial for the manufacturers of renewableenergy products, providing them good size and term for their businessesbesides creating considerable job opportunities in Pakistan,” he added.
Regarding the exploration of new oil and gas reservoirs, the Germanambassador was apprised that due to the absence of a clear globallyacceptable policy for exploration, there were few explorations as comparedto the potential that Pakistan had. “Now after the policy has beenrevamped, the government is ready to auction around 35 offshore and 10onshore sites for exploration from next months,” Nadeem Babar said.
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Omar Ayub Khan briefed the ambassador regarding the huge potential of percapita consumption of electricity in Pakistan that is currently around500KW lower than China, which is 2500Kw per capita. This means thatelectricity consumption would further increase in Pakistan with theadoption of business friendly policies by the present government, he added.
The minister said that the government has formulated a Circular DebtCapping Plan to arrest the circular debt, which was growing by Rs39 billionper month during the previous government’s tenure. “Circular debt has nowbeen successfully brought down to little more than Rs10 billion per month.This growth will be arrested by the end of next year,” he added.
The minister also threw light on the steps taken by the present governmentto bring efficiency in the power sector. He said due to extensiveanti-theft campaigns, recovery drives and action against governmentemployees, 80pc feeders across the country were now receiving uninterruptedpower supply. “Besides, considerable investment has been made to introducelastest technology, including AMI meters and Areal Bundled Cables in theDISCOs, to enhance their efficiency and reduce losses.
The German envoy appreciated the government’s endeavours, saying that theentire developed world and their entrepreneurs were watching thedevelopments in Pakistan and were ready to invest. He said that Germancompanies were also interested in taking part in the coming bidding processfor renewable energy projects.
