Diamer Bhasha Dam: United States to provide major chunk for project

Promises to help Pakistan pull out of the energy crisis.

LAHORE:

The United States has reminded Pakistan that it is committed to helping Islamabad, an important partner of the US, pull out of the crippling energy crisis with financing for electricity projects, in particular for the gigantic Diamer Bhasha Dam.

The US would provide funds for new and existing hydropower projects, which would increase electricity production by 900 megawatts by the end of 2013, said US Ambassador to Pakistan Richard Olson while talking to the media here on Monday.

He was speaking after the signing of a memorandum of understanding between the Overseas Security Advisory Council (OSAC) and American Business Forum (ABF). The memorandum is meant to explore new ways of enhancing bilateral trade between the two countries.

“We always consider Pakistan an important partner of the US,” he said. “We have constituted an energy working group for Pakistan and the US, so far America has financed a major share for upgrading Mangla Dam and will be the biggest financier for Diamer Bhasha Dam.”

Pakistan would see more and more energy projects with US assistance in coming days, he said, believing without solving this issue economic progress might not be achieved.

About 400MW had already been added to the national grid and the rest would be added by the end of the year, he said.

The ambassador, however, appreciated the economic progress the country had made in such tough conditions. “Although Pakistan is going through the worst of the energy crisis, still the economic growth is expected to be 4% this year, which is appreciable,” he said.



Talking about Iran-Pakistan gas pipeline, Olson did not budge from the old stance, saying the US had reservations about the project.

Discussing the hurdles in the way of bilateral trade, he pointed out that the US and Pakistan had held discussions over the issue and the US was still open to discussing how Pakistan’s products could win better access to US markets.

“We are hopeful about a positive outcome of such meetings and deliberations,” he said. “We want bilateral trade to grow even more in coming years, for this we are working with the business community of Pakistan, different chambers and also encouraging women entrepreneurship to play its role.”

Two-way trade stood at $5 billion in 2011 and Pakistan’s exports to the US were the largest than to any other country in the world.

With a consumer base of 180 million people, a young and educated workforce and a culture of entrepreneurship, Olson saw significant business opportunities in Pakistan for American businesses in an array of sectors, including energy, consumer goods and technology.

He also had words of praise for the success of democratic process in Pakistan and expressed the hope that a peaceful change of government would help cope with economic difficulties.

“US supports the democratic setup in Pakistan and hopes that this will continue in future as in the democratic system people choose best people to govern and achieve economic stability,” Olson said.

“Once such processes are put in place, corruption and mismanagement will be eliminated gradually,” he added.

Published in The Express Tribune, January 29^th, 2013.

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