Musharraf is boosting international interest
in the power sector.
Water and power are the two basic necessities
for improving the quality of life of the people
and sustaining economic development in Pakistan.
Consumption of water and energy in a country
is a measure of its prosperity; the more a country
progresses, the larger the need for water and
power. Foreseeing the expected shortages in
electricity due to rapid industrial growth,
Pakistans government took prompt measures
to expand power generation capacity. The task
of setting up new power projects has been entrusted
to the Private Power and Infrastructure Board
(PPIB). It works as a one-stop shop for private
investors on behalf of all government bodies
and benefits from a significant representation
of the private sector on its governing board.
In order to facilitate the private sector and
eliminate the concerns over red tape, the government
has shortened and simplified the procedures
for implementation of policy measures, making
them more investor friendly and convenient to
These efforts have resulted in a tremendous
response from private investors. It is expected
that projects having cumulative capacity of
8,381MW and an estimated worth of over $8 billion
The projects, which are expected to bring
foreign investment worth over $3.5 billion,
include seven based on gas, six based on hydroelectricity,
two on coal and one on indigenous oil. Moreover,
there are another five projects that are being
considered by PPIB.
The government adopted an aggressive marketing
strategy to attract serious and credible foreign
and local investors to build new power projects.
PPIB and the Pakistan government organized two
road shows at Dubai and London to market power
generation projects. These shows were very well
received by prominent investors, lenders, consultants,
equipment manufacturers, and suppliers as well
as financial advisors.
The initial response has been very encouraging.
Various investors and international power players
from different countries including the U.S.,
Japan, China and the UAE have shown a great
interest in developing the Faisalabad, Kashmore,
and Chichoki Mallian plants.
The government has also offered opportunities
for investment in seven hydroelectric and three
coal-fueled power projects.