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May 27, 2020

US-Exim Bank Ready to Consider Financing For Pakistan’s LNG Power Projects

New York – The U.S. Exim Bank would consider providing financing for Pakistan’s plan to produce 3600 Megawatts of electricity through LNG-powered plants, if approached by the General Electric, Chairman Fred P. Hochberg said in a meeting with Finance Minister Ishaq Dar.

Pakistan is seeking to set up power plants in the central Punjab province and is encouraging investors to invest in LNG-fired power plants. The country has signed agreement with Qatar to import LNG to overcome chronic energy shortages and the imported fuel will mainly be used to produce electricity.

Many investors, including GE, have attended briefings on the government’s plan of setting up LNG-fired power plants. Prime Minister Nawaz Sharif has recently directed authorities to speed up work on the proposed power plants. He also approved construction of second LNG terminal to ensure smooth supplies.

Chairman Hochberg appreciated Pakistan’s positive economic performance over the past two years. He said that Exim Bank is looking forward to working with Pakistan on projects of mutual benefit to both countries, a Pakistan government press statement said after the meeting held in New York on Sept. 28. Dar is here as part of Sharif’s delegation to attend U.N. General Assembly.

Hochberg said Exim Bank would consider providing financing options if approached by the American company, GE.

Dar briefed Hochberg on the positive outlook of Pakistan’s economy which he said has been on a consistent positive trajectory since the current government introduced vital economic reforms two years ago.

He told Hochberg that the last two years have proved helpful in uplifting the economy of the country. The GDP growth was recorded at 4.24% while the government has managed to bring down fiscal deficit to 5.3% from a high of 8.8%, he added.

Rating Agencies including Standard and Poor and Moody’s have raised Pakistan’s economic outlook from negative to positive this year.

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