Chairman of the Board and CEO of the U.S.-based conglomerate General Electric Jeffery R. I’mmelt met Pakistan’s Prime Minister Nawaz Sharif in the capital Islamabad and discussed matters related to foreign investment in the South Asian country.
He expressed full confidence in the government’s policies and said that Pakistan’s foreign investment policies are best in the region. He also appreciated transparency in Pakistan government, according to a Nov. 3 government announcement.
Prime Minister Sharif shared with the steps his government is taking to reforms the energy sector and overcome a chronic energy crisis which is hampering growth and hurting the industrial sector.
Energy challenge remains a major obstacle to Pakistan’s overall growth and the demand is expected to double by 2030.
During his recent visit to Washington, Prime Minister Sharif and his aides discussed various options as to how the United States can help the South Asia’s second-biggest economy to meet rising energy demand.
Since 2009, the United States and Pakistan have established intense cooperation on energy. The U.S. has committed more than $1 billion to date to support energy sector investment and reforms in cooperation with Pakistan’s government.
The U.S. efforts has helped add an additional 1,700 megawatts to Pakistan’s national grid.
The new initiative called the U.S.-Pakistan Clean Energy Partnership will support significant new private sector investment in Pakistan in clean energy generation, transmission and distribution.
Under the U.S.-Pakistan Clean Energy Partnership, the United States will work with the Government of Pakistan to advance energy sector reforms, improve the investment framework, and make targeted investments that will enable U.S., Pakistani, and international private sector developers to add at least 3,000 megawatts (MW) of clean power generation infrastructure to Pakistan’s national electricity system, benefitting 30 million Pakistanis.
In September 2015, the OPIC Board of Directors approved a loan guaranty of up to $250 million for transmission and distribution infrastructure improvements at K-Electric, Karachi’s power distribution company. OPIC has also executed loan agreements facilitating U.S. private sector investment in five wind projects amounting to 250 MW of generating capacity in Sindh province.
The Pakistani and the U.S. governments will hold a Clean Energy Business Opportunities Conference in December 2015, which will highlight the U.S.-Pakistan Clean Energy Partnership and private sector investment opportunities in Pakistan’s natural gas, wind, solar, hydro, geothermal, and other clean energy projects.