CASA-1000: Islamabad, Kabul sign accord on electricity transit fees

Agreement will allow Pakistan to import electricity from Central Asia via Afghanistan

WASHINGTON:

Pakistan on Saturday signed an agreement with Afghanistan on electricity transit fees in what Finance Minister Ishaq Dar described as a major step towards closer partnership between the two countries.

World Bank President Jim Yong Kim and US Special Representative for Afghanistan and Pakistan Dan Feldman witnessed the signing ceremony at the World Bank’s Headquarters.

“It’s a win-win for both countries,” Dar said about the accord that will allow the supply of Central Asian electricity to Pakistan through Afghan territory for a transit fee of 1.25 cents per KW.

The accord was welcomed by the WB president as a success towards both meeting Pakistan’s power requirements and establishing commercial arrangements for the trade of 1,300MW of electricity between the Kyrgyz Republic, Tajikistan, Afghanistan and Pakistan as part of the Central Asia South Asia Electricity Transmission and Trade Project (CASA-1000).

Finance Minister Dar expressed appreciation for World Bank, the US State Department and USAID for their support for the landmark project. “This marks a new beginning towards greater economic cooperation between the two countries… Pakistan is committed to greater economic and trade cooperation with Afghanistan,” he said.

Afghan Finance Minister Omar Zakhilwal said Afghanistan was ready to realise the CASA-1000 vision and improve energy security and trade for the two countries and the region.

Dar meets DFID

Finance Minister Senator Ishaq Dar also met British Secretary of State for International Development (DFID) Justine Greening in Washington on Saturday and informed her about losses caused due to the recent floods and the military operation in North Waziristan Agency.



According to a statement issued by the finance ministry, Dar told Greening that the government gave a chance to dialogue till the very end but failed to get positive results and that was why it had to go for the operation in North Waziristan which was supported by all segments of the society.

The operation, codenamed Zarb-e-Azb, he said, would incur a huge financial bill, especially for the rehabilitation stage costing the national exchequer close to $1.5-2 billion.

The government at present was helping the affected in the form of food, other amenities and cash for their sustenance, he added.

The finance minister apprised Greening of the recent meeting in Islamabad in which many of the international agencies and friendly countries suggested to appeal to the international community for assistance in taking care of the flood losses.

He said a UN sponsored Rehabilitation Need Assessment (RNA) would be conducted by October 30, to estimate the losses.  Despite all odds, the minister noted that the government’s plan of economic revival was on track and all economic indicators were positive.

Speaking on the occasion, Greening said she looked forward to the visit and appreciated the government’s handling of the protestors in Islamabad and continued progress on the economic front, despite all odds.

She claimed that the people of Pakistan were keeping faith in the government they have elected and that the government was moving in the right direction despite disruptive politics.

She offered to join hands with the government of Pakistan to boost investor confidence.

She said the tax reforms undertaken by Pakistan were very well received in the UK. She also appreciated the efficacy of the Income Support Fund, which targets the most vulnerable segment of the society. 

Published in The Express Tribune, October 12^th, 2014.