ISLAMABAD: Pakistan requires $20 billion to add 17,000 megawatts (MW) to the national grid by 2020.
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In a bid to meet the burgeoning electricity demand, Pakistan made its case in a two-day international conference “Invest Pakistan” inaugurated by Prime Minister Nawaz Sharif. The government has projected that total electricity demand will be 34,000 megawatts by 2020.
The challenge is to add another 17,000MW to the national grid that requires $20 billion in investment, said Younus Dagha, Secretary In-charge Ministry of Water and Power while addressing the gathering of investors. He said the country was currently facing a shortfall of 5,000MW.
The government is seeking new investment in coal and hydro power plants, as it opens hydel generation and transmission lines for the private sector for the first time. Board of Investment (BoI) Chairman Miftah Ismail gave a presentation, highlighting investment opportunities in coal and mines sector.
The figure of 34,000MW has been worked on the basis of an 8% annual increase in demand, said Minister for Water and Power Khawaja Asif.
However, the government’s model seems faulty as electricity demand is worked out on the basis of annual economic growth.
He said no country in the world offers a guaranteed 17 to 20% rate of return on investment, legal protection of investment and full repatriation of profits.
