Review of Industry & Business - Pakistan

Thursday, March 17, 2005

An Overview of Power Sector in Pakistan

For the success of economic activities, electricity is a basic ingredient. Although, in recent days, Pakistan has witnessed surplus power scenario but in very near future there will be a huge gap between demand and supply of electricity. In year 2010, the deficit between firm supply and peak demand is estimated around 5500 MW. The gap is to be plugged with the help of private sector’s involvement.

Power sector of Pakistan comprises mainly NEPRA, WAPDA, KESC & PPIB under the umbrella of Ministry of Water and Power. PPIB is the Facilitator for the private sector whereas NEPRA is the overall Regulator of the power sector. WAPDA and KESC are the power utilities, high on the privitization agenda of Pakistan.

WAPDA & KESC generates an approximate of 10000 MW and 1800 MW of electricity respectively while PPIB administers 4400 MW (approx.) of electricity generated through the Independent Power Producers(IPPs) and sold to WAPDA/KESC.

Private Power & Infrastructure Board (PPIB)

The functions of PPIB is to provide “One Window” facility to Investors by acting as one stop organization on behalf of of all ministries, departments and agencies of the GOP in matters relating to establishing power projects in the private sector For more information, visit its website http://www.ppib.gov.pk

Physical Incentives for Investors

Pakistan’s strategic position with warm water ports, road & railway networks and shortest routes to Central Asian Republics makes it attractive for many Multinationals which are already doing good business in Pakistan. The human resources available in Pakistan is another attraction which many prospective Investors factor positively in their future plans. Availability of large reserves of Coal & Gas is another important plus point in the overall investment schemes.

The Policy of Power Generation 2002 announced by Government of Pakistan offers maximum incentives and assurances to foreign & local Investors to invest in the power sector in Pakistan.

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