Power crisis: Pakistan, US to revive dialogue on BIT

OPIC investment in Pakistan has increased from $80 million to $300 million.

ISLAMABAD: Pakistan and US agreed on Tuesday to collaborate on energy-related projects, with particular focus on exploring wind energy and bio-gas as alternative sources of electricity production and resume the stalled Bilateral Investment Treaty (BIT). 

Addressing a joint press conference alongside President Overseas Private Investment Corporation (OPIC) Elizabeth L Littefield, Federal finance minister Ishaq Dar said that Pakistan needed investment in the energy sector.

Agreeing to hold dialogues to discuss the pending issues of BIT, the finance minister said that the government was committed to resolving terrorism-related problems back home.

Dar added that talking with OPIC was part of the government's strategy to attract foreign investment in the country so that economic growth could be given a boost. He also urged OPIC to invest in private companies, adding that Pakistan had a number of lucrative opportunities for investors.

Littlefield added that the investment of OPIC in Pakistan has increased from $80 million to $300 million.

The OPIC president said that US companies have earlier been involved in working on a 50 megawatt electricity project in Sindh as well.

Littlefield said that Pakistan has a number of challenges to deal with but expressed optimism at the new government's ability to overcome them successfully.

The finance minister said that Independent Power Producers (IPPs) had the ability to generate more electricity and that the government had paid circular debt to increase production capacity.