ISLAMABAD, Feb 9: President Pervez Musharraf launched here on Saturday the $2.16 billion Neelum-Jhelum hydro-electric project, saying that its completion would contribute in a big way to socio-economic development of the country.

He said the project had a strategic importance and was needed to meet the growing power requirements.

He thanked the Chinese for their assistance, terming the project another symbol of Sino-Pak friendship.

The president said Pakistan had proposed extending oil and gas pipelines and rail network up to the Chinese border, which would be another wonder.

About the project, he said it would have a 47 kilometre-long tunnel and generate 1,000MW of “inexpensive” hydel power.

The president said the shortage of energy was due to the growing industrial sector which would be overcome through a series of power projects, including hydel, coal, alternative and nuclear. He said the country has to move forward on fast-track basis to generate power to sustain its economic growth.

He said in 2000, there was a surplus of 4000MW of electricity and even it was contemplated to export it to India. He said the industrial growth doubled and economic growth remained over 7 per cent of the GDP during the last seven years resulting in the shortage of electricity and gas.

“Today Pakistan needs electricity and gas. We should have moved forward to keep pace with the industrial and economic growth but now all efforts will be made to generate power and explore more gas reservoirs to help meet fast expanding energy requirement of the country”.

He said Bhasha dam had already been launched and other water reservoirs including, Kalabagh dam, Akori, Kurram Tangi and Gomal Zam would be constructed to generate electricity.

He said Pakistan was also planning to utilise Thar coal reservoirs. He said China was producing 70 per cent of its energy from coal while Pakistan was producing only 1 per cent of its electricity from coal.

He said the magnitude of the coal reservoirs in Pakistan could be gauged from the fact that their capacity to generate electricity was more than the capacity of Saudi and Iranian oil put together. The president said the gas exploration was being speeded up and new reservoirs were being discovered.