Roundtable conference: Nawaz lures investors into energy sector
PM hints at promoting public-private partnership; talks about transforming the role of govt from manager to regulator
LONDON:
Prime Minister Nawaz Sharif on Thursday offered to align his country’s policy framework with the best international practices in the hope that the London Roundtable Conference on Energy would help Pakistan create an enabling environment for investment.
At the same time, PM Nawaz called for formulating an optimal energy policy for Pakistan, with particular focus on energy sufficiency and developing a competitive energy industry.
The premier invited foreign businessmen to invest in country’s lucrative energy sector. “It [the sector] holds great promise for an attractive rate of return on all investments,” he said.
The dialogue at the conference on Thursday focused on three key areas including policymaking, best practice on privatisation and trade, and investment opportunities in support of Pakistan’s energy sector.
“We will not only discuss electricity generation and distribution but also explore how to promote public private partnership in the energy sector,” said Nawaz. He said the government would also like to know the incentives and policy framework that can spur private investment in oil and gas sectors of Pakistan.
Nawaz said he remains committed to transforming the role of the government from a manager to a regulator. “We would like to explore how to build the public sector’s ‘capacity to regulate’ in a short time, he added.
“We used our political capital to take tough decisions, which have resulted in significant improvement on all major economic indicators.” The prime minister said the government has reduced its budget deficit from over 8% in the fiscal year to less than 6% in the first year, and said the government was poised to end the current fiscal year at around 5% deficit.
“Our GDP growth, though insufficient, increased to 4.1% last year, is expected to be around 5% this year, and over 7% before our term ends.
He said his vision was to develop a competitive energy market in Pakistan that provides a fair return on investment, and through a robust regulatory regime, adequately protects the rights of consumers.
“We are prepared to transfer management control for improving service delivery, while retaining majority shares in these companies. I fully realise that this turnaround will require our complete commitment and support,” the premier asserted. The prime minister said he has always advocated the importance of regional connectivity for accelerated economic growth and prosperity of the people across national boundaries. He expressed confidence on the recently finalised initiative of CASA-1000 project, which links Kyrgyzstan, Tajikistan, Afghanistan and Pakistan in a mutually beneficial relationship through an electricity transmission initiative. Nawaz said his government aims to develop one of the world’s largest coal deposits at Thar in Sindh as the future energy capital of Pakistan. He said the vast resources of Thar were enough to meet the energy needs of many countries in the region for tens of decades to come.
“Government is committed to provide full support for successful and early exploitation of these reserves,” he said. “I am confident that these initiatives will not only provide for commercially viable economic solutions but also strengthen peace and stability in the region.”
At the conference, the British side was represented by Tobias Ellwood FCO, Minister for Pakistan, Foreign and Commonwealth Office. He was accompanied by British Energy Minister Matthew Hancock.
Following the conference, Ellwood said: “Britain is committed to addressing Pakistan’s energy needs through sharing our policy expertise, experience and industry.” “The talks today have brought together an impressive range of policy officials and industry experts to discuss the challenges and opportunities in Pakistan’s energy sector,” he added. Representatives of over 20 British companies attended the conference.
Published in The Express Tribune, November 14th, 2014.
Prime Minister Nawaz Sharif on Thursday offered to align his country’s policy framework with the best international practices in the hope that the London Roundtable Conference on Energy would help Pakistan create an enabling environment for investment.
At the same time, PM Nawaz called for formulating an optimal energy policy for Pakistan, with particular focus on energy sufficiency and developing a competitive energy industry.
The premier invited foreign businessmen to invest in country’s lucrative energy sector. “It [the sector] holds great promise for an attractive rate of return on all investments,” he said.
The dialogue at the conference on Thursday focused on three key areas including policymaking, best practice on privatisation and trade, and investment opportunities in support of Pakistan’s energy sector.
“We will not only discuss electricity generation and distribution but also explore how to promote public private partnership in the energy sector,” said Nawaz. He said the government would also like to know the incentives and policy framework that can spur private investment in oil and gas sectors of Pakistan.
Nawaz said he remains committed to transforming the role of the government from a manager to a regulator. “We would like to explore how to build the public sector’s ‘capacity to regulate’ in a short time, he added.
“We used our political capital to take tough decisions, which have resulted in significant improvement on all major economic indicators.” The prime minister said the government has reduced its budget deficit from over 8% in the fiscal year to less than 6% in the first year, and said the government was poised to end the current fiscal year at around 5% deficit.
“Our GDP growth, though insufficient, increased to 4.1% last year, is expected to be around 5% this year, and over 7% before our term ends.
He said his vision was to develop a competitive energy market in Pakistan that provides a fair return on investment, and through a robust regulatory regime, adequately protects the rights of consumers.
“We are prepared to transfer management control for improving service delivery, while retaining majority shares in these companies. I fully realise that this turnaround will require our complete commitment and support,” the premier asserted. The prime minister said he has always advocated the importance of regional connectivity for accelerated economic growth and prosperity of the people across national boundaries. He expressed confidence on the recently finalised initiative of CASA-1000 project, which links Kyrgyzstan, Tajikistan, Afghanistan and Pakistan in a mutually beneficial relationship through an electricity transmission initiative. Nawaz said his government aims to develop one of the world’s largest coal deposits at Thar in Sindh as the future energy capital of Pakistan. He said the vast resources of Thar were enough to meet the energy needs of many countries in the region for tens of decades to come.
“Government is committed to provide full support for successful and early exploitation of these reserves,” he said. “I am confident that these initiatives will not only provide for commercially viable economic solutions but also strengthen peace and stability in the region.”
At the conference, the British side was represented by Tobias Ellwood FCO, Minister for Pakistan, Foreign and Commonwealth Office. He was accompanied by British Energy Minister Matthew Hancock.
Following the conference, Ellwood said: “Britain is committed to addressing Pakistan’s energy needs through sharing our policy expertise, experience and industry.” “The talks today have brought together an impressive range of policy officials and industry experts to discuss the challenges and opportunities in Pakistan’s energy sector,” he added. Representatives of over 20 British companies attended the conference.
Published in The Express Tribune, November 14th, 2014.