Power sector offers scope for big profit

PUBLISHED : Wednesday, 14 August, 1996, 12:00am
UPDATED : Wednesday, 14 August, 1996, 12:00am

There is enormous potential for investors in Pakistan's power and energy sector.

Pakistan is an energy-deficient country. Its power generation capacity is far below demand.

Electricity is available to only 40 per cent of the population and per capita consumption of electricity is extremely low.

Meeting the requirements of a rapidly industrialising nation is made even more daunting by the lack of readily available fossil fuel.

But the good news is that there is enormous potential for the development of small-to-medium-sized hydro-electric power projects.

Development of power transmission systems is another area for investment.

About 50 per cent of the national grid is to be contracted out to the private sector by next year.

Foreign investors are offered internationally competitive terms, an attractive framework for investment, reduction in local currency investment requirements, simplified procedures, and measures to create and encourage a domestic corporate debt securities market.

Another sector receiving top priority is ports and shipping. The accelerated tempo of economic activity, the expected increase in international trade, and the expected role of Pakistani sea ports as access points to central Asian economies are factors which point to the need to develop ports. Again, the policy is to involve the private sector.