- US officials, Pakistan finance and power ministers highlight need to work together for power projects
The United States (US) Wednesday pledged support for Pakistan’s $14 billion Diamer Basha Dam project with capacity of 4,500 mega watts (MW) of electricity, as top officials and private business leaders explored investment prospects amid exponential energy needs of America’s ‘critical partner’ nation.
The US and Pakistani officials spoke at a joint platform that brought together senior leaders and experts and business leaders at the US Chamber of Commerce meeting co-hosted by the US Agency for International Development and the US-Pakistan Business Council.
Speaking on the occasion, the US officials including USAID Administrator Dr Rajiv Shah and US Special Representative Dan Feldman along with Pakistan’s Finance Minister Senator Ishaq Dar and Minister for Water, Power and Defense Khawaja Muhammad Asif highlighted tremendous opportunities for American and international investors in the ‘transformational’ power generation and water storage project.
Pakistan’s Ambassador to the United States Jalil Abbas Jilani and US Ambassador in Islamabad Richard Olson also participated in the day-long conference spread over several sessions.
Pakistan needs 10,000 MW of electricity to meet its rapidly growing domestic, industrial and agrarian power requirements. The materialization of Diamer Basha Dam will be a giant step in that quest.
Besides producing 4,500 MW of electricity, Diamer Basha Dam will help with four million acre of water for irrigation, save millions from flash flooding, boost other hydro projects and contribute vitally to extending life of Tarbela Dam by 30 years.
The US President Obama administration officials assured the investors of effective results, citing results from US-financed energy up-gradation projects in Pakistan.
“We know that success can take hold,” Dr Shah said in reference to completion of small projects and addition to power generation capacity of large dams.
Daniel Feldman said the US and Pakistan have a wide-ranging strategic partnership and that Washington is in for a long-term economic and investment relationship with Pakistan, particularly in the energy field.
“Investment in the Diamer Basha Dam is the smartest choice for Pakistan,” Feldman remarked, reiterating the White House and US Secretary John Kerry’s commitment to back economic and energy security of Pakistan.
Finance Minister Ishaq Dar said Prime Minister Nawaz Sharif’s government is committed to encouraging foreign investment in various sectors of the economy and is clear that the country needs both Dasu and Basha dams. “We have demonstrated our commitment and acquired land from own indigenous resources,” he added.
Terming Diamer Basha Dam as one of the top national priorities, the finance minister said that the government’s resolve to bolster the national economy is evident from a series of macro-economic positive indicators that Islamabad has achieved in a short period of time.
Dar apprised the meeting of government’s robust economic agenda, saying Islamabad has stemmed the economic downslide it inherited and now exports, GDP rate, remittances, revenue collection and industrial growth have registered marked growth.
Despite demonstrations in Islamabad, the rupee has been fairly staying at stable exchange rate, while inflation has also been checked, he added.
Senator Dar said the government has paid off circular debt it had inherited from the previous administration and also expanded development spending to Rs 525 billion.
Minister for Water, Power and Defense Khawaja Asif said Washington’s support for the vital Diamer Basha Dam will cement the relationship between the two countries. Pakistan believes it can best cope with energy shortages through hydro power projects, he said, adding it provides inexpensive power to users. He also drew attention to the lucrative and enormous investment opportunities that Pakistan’s energy sector offers with the promise of healthy returns.