https://arab.news/72dzq
- New policy allows exploration companies to sell 35 percent of future gas discoveries to private entities
- Pakistan says main objective of new policy is to encourage public-private partnership in energy sector
ISLAMABAD: Pakistan has developed a new energy policy that will help the country attract $5 billion in investment through public-private partnerships, state-run media reported on Sunday, with the move expected to help create thousands of jobs and reduce reliance on imported fuel.
Pakistan has aggressively pursued reforms in its energy sector, which has long struggled with financial strain due to circular debt, power theft and transmission losses. These problems have led to blackouts and high electricity costs in the South Asian country.
Pakistan’s increased reliance on imported fuel has also drained its foreign exchange reserves, bringing the country to the brink of a sovereign default in 2023 before a last-gasp $3 billion bailout by the International Monetary Fund (IMF) came to the country’s rescue.
“A new policy has been introduced for the development and prosperity of energy sector with the support of SIFC,” state broadcaster Radio Pakistan said in a report, referring to the Special Investment Facilitation Council (SIFC) body.
“The policy will enable the energy sector to attract up to 5 billion dollars in investment and it will pave the way for 35 percent private investment in this sector.”
The report said that the main objective of the policy is to encourage public-private partnerships in the energy sector.
A separate video released by the SIFC said the policy allows production and exploration companies to sell 35 percent of future gas discoveries to private entities through a comparative bidding process.
The SIFC said the policy will help create thousands of jobs in Pakistan, boost gas production, help the country rely less on expensive imported fuels and accelerate its Gross Domestic Product growth.
Pakistan constituted the SIFC, a hybrid civil-military body in June 2023 to attract international investment in agriculture, energy, livestock, tourism, mining and minerals, and other priority sectors.
The SIFC has targeted mainly Gulf countries and has signed agreements worth billions of dollars since it was formed in 2023.