ISLAMABAD: Russia has offered Pakistan to invest in energy sector and export 5000 MW electricity through Kyrgyzstan-Afghanistan route.

A Russian delegation led by deputy minister for energy, comprised representatives of major energy companies here on Thursday called on Federal Minister for Planning, Development and Reforms, Ahsan Iqbal and discussed cooperation in energy sector.

The delegation extended its cooperation in energy sector including import of electricity, LNG, natural gas, coal power production and oil and gas exploration.

Russian investors offered 100 per cent technical and financial solutions for the Jamshoro and Muzaffargarh power plants and also showed interest to invest in Gaddani Power Park.

Russia is building hydro-power plants in Kyrgyzstan and Tajikistan including 3900MW project in Kyrgyz Republic and looking for new markets to export cheap electricity.

Russian delegation made an initial offer of 1000MW which would subsequently be increased to 5000MW and this electricity will be available throughout the year.

Russian Companies also showed interest in export of LNG and oil exploration in Pakistan.

Speaking on the occasion, the Russian minister said that he was encouraged with policies of the government and Russian investors are eager to invest in energy sector of Pakistan.

He stressed the need for constituting a working group to tap the potential of energy cooperation between the two countries and offered cooperation in modernising existing thermal plants and shifting them into coal-fired technology.

Ahsan Iqbal informed that there was a great potential between both the countries for cooperation. “We welcome Russian investment in our energy sector. We are in the center of three major engines of growth which puts us at strategically important position,” he added.

South Asia, China and Central Asia represent a market of three billion people, he added.

The minister urged Russian investors for taking advantage of this opportunity as Pakistan possesses rich resources and offers best incentive for foreign investors.

Ahsan Iqbal said that government believes in transparency and zero tolerance against corruption for socio-economic uplift of the country.

More From This Section

3G and 4G auction to yield $1.3bn, says Dar

The fee would be recovered within five years, and the licence would be valid for 15 years.

16 MoUs signed at business meeting

Over 300 representatives of the private and public sectors from CARs, Afghanistan and Pakistan attended the conference.

Bulls stage spectacular rally of 362 points

Bulls tossed KSE-100 index up by 362.38 points to a high at 29,458.15 in a rally effectively led by foreign investors.

Sindh revenue collection jumps by 23pc

Revenue collection in Sindh between July 2013 and March 2014 stood at Rs23.7bn, witnessing an increase of 23 per cent.


Comments are closed.

Comments (36)

ali
September 20, 2013 3:17 am

Cooperation from Russia for import of energy, LNG natural gas and coal power production is a good idea and will play a part in boosting relations with that important country, they did not however do much when they were exploring gas and oil during the 50,s and 60s .But this again is a long term project with 1000 MW coming in a couple of years and increasing it to 5000MW will take another few years,

leo
September 20, 2013 4:17 am

Will the government avail this opportunity or turn it down like it did the offers given by Iran and China? Pakistan must be the only semideveloped nation with nucleartechnology where reliable electricity is a forbidden thing. I think Pakistanis must LOVE loadshedding.

S. Israr Ali
September 20, 2013 6:13 am

Why to wait then in availing to accept this golden opportunity? Pakistan is blessed by its lying in strategically important locations and if look around all golden opportunities exists next door in neighbours to solve out all its problems and no need to look beyond or go far to USA or Europe etc. Earlier neighbouring Iran with whom Pakistan have long common border, an old friend and ally, also offered immediate supply of 2000 MW electricity apart from supply of gas from its large reserves with every help to build infra structure and facilities etc., which also went in cold burner. We should keep our national interest supreme and should immedately adopt macro avenues to make good the power short falls which is such an acute problem killing the country's economy, production, progress, devekopment and employment and consequently ruining people's welfare.

mujahid
September 20, 2013 7:30 am

Pakistan is planning to import electricity from Russia,Kyrgyzstan,India & few more countrie in the pipeline which shows how enthusiastic this govt is & the Minister Incharge Ahsan Iqbal is also looking after the energy issues who attended the National assembly only 2-3 times as he falls into the category of BUSY Ministers although if i am not mistaken we already have 2-3 ministers in the power sector.

mohammad
September 20, 2013 8:48 am

great and well done.

arif qureshi
September 20, 2013 9:46 am

govt of pakistan should respond positively as we are in desperate need of elect energy

arif qureshi
September 20, 2013 9:46 am

govt of pakistan should respond positively as we are in desperate need of elect energy

Punjabi from other side
September 20, 2013 11:28 am

Pakistanis are obsessed with word "Strategically important position"

Saad(DXB)
September 20, 2013 12:48 pm

Countries that are friends with Russia know well they have a friend which will stand by them at all times. I think Pakistan should stop dreaming of being close to her 'Fair Weather Friend' that only needs Pakistan to keep China and Iran's influence in the region, in check. Being friends with Russia will be thoroughly rewarding to Pakistan as Russia is known to be the world's most advanced country in metallurgical sciences, her State owned Petrochem company called 'Gazprom' supplies to entire Russia, Eastern Europe and some Central Asian states. Russia also doesn't meddle in the internal affairs of a country. Pakistan can also learn a lot from Russia in fields of medicine, engineering, mining, transportation, infrastructure development, ports and shipping and oil & gas development.

In short, Pakistan should embrace this hand that Russia has extended in friendship.

Rana Fahid Rasheed
September 20, 2013 1:08 pm

Great news, Pakistan should avail this opportunity.

Ali Hameed
September 20, 2013 6:37 pm

I don't agree with the last two lines of this article.

mohammed usman sajid
September 20, 2013 7:16 pm

it doesn't matters that how much offers are offered to Pakistan untill they are implemented!

Mike
September 20, 2013 7:42 pm

@Saad(DXB): Russia also doesn't meddle in the internal affairs of a country, Really? Pakistan has been suffering since 1979 only because of USSR when it sent its troops to Afghanistan. It stopped medding in other countries only after it was disintegrated in 1990s and became Russia (formerly USSR). I am not against having good working relationship with Russia but Pakistan needs to look at all available options prior to investing hugely with no 'home work'. With its natural reserves of oil, gas and other minerals, it can progress in no time but needs sincere efforts from current government. Good luck!!!

Rafi
September 20, 2013 7:52 pm

Finalizing the agreement with Russia will also rectify the historical mistake that we committed by laying all proverbial eggs in the American basket in 1950s. It is time we should learn to detach ourselves from the apron strings of America. However, a more far-sighted policy would be to become self-reliant instead of replacing one master with the other.

Egor Divanick
September 20, 2013 7:54 pm

5000 MW will definitely be fortune changer for Pakistan energy needs and economy; this will also be positive step for further cooperation among both countries. Pakistan should also go for a deeper economic, strategic, political and military cooperation with Russia.

syed baqar ahsan
September 20, 2013 8:04 pm

We Americanized with no own grey matter to understand and take advantage,Zardari bluffed China by signing 22 billions$ not a single materialize,doing all sorts of nonsense with Iranian gas pipeline and supply of its electricity.Sometime jumping to Qatar LPG,Import of electricity from energy starved Indian and above all our bureaucracy is bunch which mislead all types of leadership, we are only worth few American megawatts worth millions of $ from well laid traps like supply of parts,renovation of plants,raising walls,USAID tubewells save energy,management efficiency cadres-to thing big and look beyond few years is not the capability of our completely politicized/nincompoops bureaucracy.

Akram
September 20, 2013 8:09 pm

whilst looking into this opportunity we should be mindful of the Russians previous relationships with consumers of their energy in Ukraine, and Europe. Add to this the fact its a virtually mafia run state by the KGB, we should be wary of spending our own resources or relying too much on such a country. By all means look into it, but don't forget the strings that will be attached to any deal.

kashiph
September 20, 2013 8:14 pm

Its necessary for Pakistan to avail this golden chance. Without getting help from other countries we never get rid of this evil load sheding

Nadeem
September 20, 2013 8:25 pm

@Saad(DXB): Absolutely right, we should shake hand with Russia. History shows Russia supports her friends all the time; they are not like America.

Oz
September 20, 2013 9:46 pm

How will the power lines be protected in Afghanistan - that is the problem. However, if this can be worked around, why not. On the same subject, what about Iranian energy deal too - they were kind enough to pay for the all the infrastructure, how can that offer be bad for Pakistan....? At the end of the day, what makes me upset even more is that we have all the resources at our disposal to create our own electricity, but we are a nation with chor, daako and luteras installed by the West, who will never let us prosper.

Jankhel
September 20, 2013 9:44 pm

Why does our successive governments keep on dangling these carrots in the front of the nation. Pakistan has all the energy resources inside the country, we don't need to import any enrgy from outside, just keep our government clean, which is not going to happen, there is more emphasis on foreign trips than house cleaning, I wonder what our senior officials discuss when they go abroad, discussing immigrating, shopping, schools for their kids, since most possess fake degrees anyway, bring "Jahil" officials at least they will be honest.

Oz
September 20, 2013 9:49 pm

Here is a solution I came up with, take this as an alternate;

Deficit of Balochistan should be covered by taking up Iran's offer ot 2000 MW. Deficit of Punjab should be covered by taking up Russia and India's offers of over 6000MW KPK and Sindh will have more than enough of the electricity that we create ourselves.

Howwaaazzaaaatt ???

Ravi Ingale from Pune
September 20, 2013 10:47 pm

How Pakistan will pay them??

sazish ul zafar
September 20, 2013 11:42 pm

wow, good offer from Russia.Similar to Gas Line from Iran. But First things first, Lets ask Obama, if we can close the deal with Russia. And also ask Jui Jui-f Pti and TTP, as Jihadist personaly won't approve Russia.

nabil
September 21, 2013 3:57 am

We must stop getting excited every time some country refers Pakistan as strategically important,they say only line up there pockets .all these countries comming foreward with offers of Electricity & Gas will also have ON / OFF switch,to them when Pakistan is Not strategically important any longer. We must Pawning our resources to other countries. Our people need inspiration,training to generate creative minds,and build Pakistan with our own Power.

falconx
September 21, 2013 5:03 am

pakistan can be so lucky, gas from iran, electricty from russia and Kyrgyzstan, technical support from china. aid/oil from middle east and the most important friendship with india its neighbor. these are all the things paksitan need to become the next japan. what is japans main resource (its people) realy hard working people. this is not wishful thinking it can all be achived.

Safdar
September 21, 2013 2:37 pm

@Saad(DXB): It will also help us rid of taking dictation from our "brotherly" countries who have done no good to Pakistan but to push their political/sectarian agenda. It is evident that in recent years, we have become proxy batttleground for sectarian infighting between two regional powers and in my view, as a nation we have no such sectarian strife and hence we should stay away from their mess.

Virendra
September 21, 2013 4:36 pm

A typical thing I have noticed in most finance related news here is that people start jumping at mere announcements or offers. Nobody waits for the completion or even if the offer/project was ever started.

Z. Khan
September 21, 2013 5:33 pm

Prime Minister Nawaz Sharif and Pakistan has a great opportunity to mend ties with Russia. This can become a regional success story. America does not want regional neighbors to have cordial relationships with each other because it will reduce it's hegemony. US exploits the differences of neighbors to its own advantage. I thought our PM will have the wisdom to attend the SCO meeting but he didn't. Instead he was in Turkey and now on his way to US. I'm so disappointed.

unbelievable
September 21, 2013 6:55 pm

What does this energy cost and how does that compare to other alternatives? That's the critical question. There is a surplus of World Wide energy and Pakistan's terrible financial condition has prevented it from accessing that energy market. Russia is notorious for extracting absorbent prices for it's energy and lets not forget that their previous offer to build the IP was conditioned on a "no bid" contract. No such thing as a free lunch and I suggest you do the appropriate analysis before agreeing to anything.

SHAHZAD
September 21, 2013 7:45 pm

JUST ANOTHER WISH LIST PROJECTAND HAPPY TALKS FOR PAKISTANI GOVERNMENT. The people will be just happy with that thats all. For how long we have planed for Iran Gas pipe line? all these projects will be completed when the world ends and most of us dead.

French Toast
September 21, 2013 7:53 pm

@Punjabi from other side: Indians are obsessed with Pakistanis being obsessed with "strategically important position'.

Shah
September 22, 2013 4:49 am

Call china ... they will build you few stations, why export when you can generate? stop wasting the money, haven't you learned enough lessons from the previous Govt.?

Riaz
September 22, 2013 12:35 pm

Thanks Russia but no thanks ! we need to ask our master US and Saudi if we can have a decent life or not. So don't waste your time

shah
September 22, 2013 1:05 pm

@Ali Hameed: we do not believe in corruption and misuse of power, and to prove it, we will buy stuff from a corrupt regime !!!

Amir
September 22, 2013 2:06 pm

@Mike.. You have answered your own question.. you are referring to USSR.. and this is Russia we are talking about.. and I am glad you were wise enough to point out too that Russia stopped interfering after it stopped being USSR.

Explore: Indian elections 2014
Explore: Indian elections 2014
How much do you know about Indian Elections?
How much do you know about Indian Elections?
Poll
From The Newspaper
Tweets