Japanese investors are keen to invest in energy sector in Pakistan

[LRE-Azan]

Islamabad: Japanese investors are keen to invest in energy sector after a recent cooperation between Pakistan and Japan in construction of Islamabad-Burhan transmission line, an envoy said on Wednesday.

Ambassador of Japan Takshir Kurai, in a meeting with Minister for Power Division Awais Leghari, said Japanese companies and investors are closely following the potential and good rate of return in the power sector.

“Japan will continue to provide assistance to Pakistan in different fields. Japan and Pakistan has undertaken many good projects in power sector,” Kurai said in a statement. “Many companies are now showing interest in investing in power sector in Pakistan.”

In May, Japanese government loaned $24 million to Pakistan for the transmission line. Power minister invited Japanese companies and investors to invest and explore four billion dollars power distribution market, especially service delivery to the consumers and transferring modern technological solutions.
The minister, highlighting the importance of service delivery within the electricity distribution network, said since the government has been able to bridge the demand and supply gap with its induction of multiple fuel power generation, “the emphasis is fast shifting towards providing the electricity to the end consumers with service delivery of international standards.”

“Government is now pondering over bringing in the private sector for better service delivery to the end consumers,” he said. “Since the distribution network and associated gadgets are still lacking the modern technological advancement, and present Discos (distribution companies) have no enough investment, it is high time that the public-private partnership can take the stage.”

Leghari said government is considering multiple options with high rate of return on investment in the distribution system. He appreciated the existing level of cooperation between the two countries, especially in the power sector.

The minister also highlighted the need of Japanese assistance in capacity building of the human resource at different levels of the power sector. He directed the power division to keep close liaison with Embassy of Japan.

He urged the need of assistance by the Japanese side in the formulation of policy documents and energy plan for power sector. Government is also mulling amendments into National Electric Power Regulatory Authority Act to lure private investment in supplying of electricity to consumers.

The power minister said existing public sector electric supply companies must improve its service delivery or they will face tough competition from the private sector companies. Power line losses due to decrepit system as well as pilferage hovers 15 to 20 percent and according to an estimate each percentage point entails nine to Rs10 billion in cost.