The chief of the Alternative Energy Development Board has claimed that renewable energy sector has received a huge investment of $3 billion during the last one year, showing that the climate is conducive for foreign investors in the country. Pakistan has been facing severe energy crisis for the last two decades and various efforts have been made to overcome the problem. The private sector has been allowed over the years to install power projects and various wind and solar energy projects are initiated to meet the growing demand of electricity in the country. However, in the absence of an effective check and balance, many projects proved to be utter failure, including Nandipur power project and Quaid-e-Azam Solar Park. All the European countries, where sun is quite rarely seen, are shifting their focus on solar energy. Pakistan, on the other hand, is situated in the best location where sun shines with all its might all over the year and is potentially solar energy rich country. There is a need to tap this natural gift rather than taking cosmetic steps as we are in such a habit in this country.
The $3 billion is a lot of money if this investment is actually materialized as the government has disappointed the nation on many occasions in the past. For example, instead of mass import of voltaic cell from China, it would have been plausible to manufacture these kinds of cells in the country. Voltaic cells convert heat into the electricity and its technology is not a rocket science. Unfortunately, the commission mafia has got the manufacturing of this cell banned in Pakistan. Therefore, you have only one option left. Import it from China at any rate.The government should invite giant multinationals to set up their plants in Pakistan and this will not only bring investment, but also transfer of technology. There is a need to make Pakistan a destination of choice for potential investors and the government steps should entail a series of concessions for the local and foreign investors.
There is a vast potential in energy sector, but the government should have to introduce a lucrative tariff structures, a robust policy framework, and safeguards for investors’ money. The confidence building measures are necessary otherwise the whole exercise will end in fiasco. Pakistan is a promise land for foreign investors, but the government will have to simply investment procedure and announce a concessional tax regime. Apart from energy sector, there are many other fields where the foreign investors can invest and earn enough profit.