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Pakistan seeks creation of regional energy hub

By Ijaz Kakakhel

ISLAMABAD: The Pak-Tajik Joint Economic Commission (JEC) meeting wants to establish an energy hub and provide electricity to deficit countries, Federal Minister for water and power, Rajaz Pervez Ashraf, said here on Monday.

Talking to journalists after the JEC inaugural session, the minister said some regional countries have surplus electricity while others were confronting severe power crises. “We will try to establish the energy hub and distribute electricity according to the need,” he maintained. He said Pakistan was confronting 3500 MW electricity shortfalls and expressed the hope that it would be removed by Dec 2009 due to hectic efforts by the government.

Answering a question, he said the meeting would also discuss the menace of terrorism, which badly affected the entire region, particularly Pakistan and would find out its solution.

Earlier during the Third Session of Pak-Tajik Joint Economic Commission (JEC) meeting, the minister said Pakistan attached great importance to preferential trade agreement (PTA) with Jajikistan and expressed the need for early finalization. It would help both the countries to get maximum trade benefits of bilateral trade.

Raja Pervez Ashraf and Gul Sharali Minister for Energy and Industry Government of Tajikistan co-chaired the JEC. Ashraf said to meet the gap between demand and supply in its domestic market, the government is keenly interested in import of hydroelectricity from Tajikistan. The four governments and representatives of the World Bank and Islamic Development Bank reiterated their support for CASA-1000. He said strong commitment and a timetable for implementation is needed from Afghanistan, Pakistan, Kyrgyz Republic and Tajikistan for the CASA-1000 Project.

He offered the services of the companies of State Engineering Corporation (SEC) and said it had adequate potential to manufacture and supply engineering goods to Tajikistan as per international quality and standards. Moreover, the SEC could play an important role in the development of infrastructure of Tajikistan, especially in the fields of electricity, transmission, and distribution and construction industry. The minister also said there was need for a fresh air service agreement to allow the commercial operators to commence operations. He said Pakistan fully support the liberalization of trade among the ECO member states and particularly with Tajikistan by elimination tariff and non-tariff barriers.

Pakistan’s water and power minister said the JEC would lead to an even higher level of economic and bilateral commercial cooperation and said it was indeed a matter of great satisfaction that Pakistan and Tajikistan had traditionally enjoyed close and brotherly ties. The trade between the two countries during the last few years had been negligible due to non-availability of road links with Tajikistan. Both countries would have to develop and operationalize a good connecting road and rail network. “We would welcome Tajikistan to join the Quadrilateral Agreement on Trade in Transit.”

The ports of Pakistan were ideally suited for Tajikistan’s trade with South Asia and the regions beyond. “These ports offer Tajikistan the shortest land route to the Sea. Similarly finalization of bilateral agreement on International Transport of Passengers and Goods by Road, for transit to other countries, I believe, would facilitate our trading community to access markets in the region and beyond,” he added.

“We believe that with the growth of our economies there exist vast opportunities of bilateral cooperation in the field of trade, manufacturing, livestock, fisheries agriculture, investment, industrial joint ventures, health, education and science, petroleum & natural resources, mining, environment, combating against terrorism, culture sports and tourism, more vigorous efforts need to be undertaken to capitalize on available opportunities with a view to providing long-term benefits to our people by alleviating poverty.”

“I am sure that by setting up two-way trade during the coming years and encouraging regular exchange of delegations of businessmen/ industrialists will strengthen and consolidate our commercial trade and economic ties between the two states”, he maintained. The economy was now more stable economic policies were transparent and predictable confidence of the private sector is restored to a larger extent expatriate Pakistanis were bringing their capital back external balance of payments were in comfortable position, he concluded.

Tajik Minister for Energy and Industry also addressed the meeting and said both countries should expand their economic cooperation and enhance bilateral trade. The JEC would further strengthen trade ties and would open new venues of cooperation. He said a number of hydro electric projects were in pipeline in Tajikistan and after its completion, Tajikistan would be able to export more electricity to regional countries.

The JEC would conclude today (Tuesday) and joint protocol would be signed today on agreed proposals.

The JEC would also examine ways to enhance interaction among businessmen and corporate sectors of the two countries. The JEC would explore the possibility of revised air service agreement between the two countries.

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