Beijing: Seeking to overcome an energy crisis that is hampering its economy, Pakistan has proposed 19 new energy projects for Chinese companies, in addition to a host of hydro and nuclear ventures already being undertaken by China, including a dam in Pakistan Occupied Kashmir (PoK).
Pakistan’s Water and Power Minister Syed Naveed Qamar, who held talks with Chinese officials here during the past two days, proposed 19 energy projects to officials of hydropower companies and banks for contracting and investment, state-run Global Times here reported.
They include four power generation projects of 2,297 megawatts capacity and one coal power project of 405 megawatts capacity.
“Economic growth (in Pakistan) is hampered by this lack of power, which we feel can be rapidly built up by the presence of these large state-owned and private Chinese companies in Pakistan,” Qamar told Chinese media after the Pakistan-China Joint Energy Working Group in Beijing.
Pointing out that there is a 5,000 megawatts deficit in the country’s power system which could grow further, Qamar said Pakistan government will set up fast-track procedures for approval of Chinese projects.
He said China will mainly focus on solving financing issues for these multi-billion dollar projects, ranging from dams to nuclear power stations. Besides two nuclear power reactors of 350 mw each at Chashma, China has committed to build two more in addition to a one giga mw nuclear power project.
Also, China is assisting three major dams, including USD 13 billion Diamer-Basha dam in the Gilgit-Baltistan area of POK, which has a planned capacity of 4500 mw.
Qamar’s visit comes at a delicate time in the “all weather” relations of China and Pakistan, as Beijing for the first time has directly blamed terrorist camps in Pakistan for training Uyghur militants who took part in the last weekend attacks in Kashghar in Xinjiang, located close to POK.
Around the same time, ISI chief Gen Ahmed Shuja Pasha paid a secret visit to Beijing for talks with Chinese officials, according to reports in Pakistan media.
According to the Chinese Commerce Minister, Chinese enterprises had signed contracts worth of USD 19.87 billion investment in Pakistan till last year and China’s direct investment in Pakistan has hit USD 1.36 billion. (PTI)
Calling for more cooperation in areas such as hydroelectric power, nuclear energy, oil and gas, Qamar said the two sides discussed policies and also touched on specific projects that Chinese companies are working on in Pakistan and how both countries can make efforts to facilitate them.
The two countries agreed to promote a long-term meeting mechanism for bilateral energy cooperation, he said.
As Qamar sought more investment by Chinese companies, a Chinese expert has cautioned companies about investing in Pakistan citing risks owing to political an economic uncertainties.
Hydro and nuclear projects involve huge, long-term investments and the Chinese companies should not underestimate risk factors such as political and economic uncertainties, Wang Jianmao, an economics professor at China Europe International Business School in Shanghai said.
“Due to political reasons, Chinese foreign-aid investments tended not to have high returns, but it should not continue to be so, as China is expected to keep diversifying investments for the next 10 to 20 years,” Wang told Global Times.