Shoura Council approves Saudi investment in Pakistan’s renewable energy

Pakistani workers prepare solar energy light panels on a road divider in Islamabad on February 2, 2014. (AFP)
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Updated 30 January 2020
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Shoura Council approves Saudi investment in Pakistan’s renewable energy

  • Saudi Arabia announced $20 billion investment in Pakistan’s renewable energy in February 2019
  • Cooperation with Saudi help Islamabad achieve its energy targets – AEDB chief

ISLAMABAD: The Saudi Shoura Council has approved a draft agreement between Saudi Arabia and Pakistan on renewable energy development.

“The Saudi Shoura Council approves a draft MoU between Saudi Arabia and the government of Pakistan to study investment opportunities in the refining and petrochemical sectors,” the Shoura Council said in a Twitter post on Tuesday.

“The government of Pakistan will certainly welcome the investment from international investors, including from the Kingdom of Saudi Arabia,” Dr. Rana Abdul Jabbar, chief executive of Pakistan’s Alternative Energy Development Board (AEDB), told Arab News on Wednesday.

He said that renewable energy cooperation between Pakistan and Saudi Arabia was initiated in February last year when the draft memorandum was signed during the visit of Crown Prince Mohammed bin Salman.

“The government has already signed the MoU with the Kingdom of Saudi Arabia for the development of renewable energy power projects in Pakistan,” Jabbar said.

During the crown prince’s visit, Saudi Arabia announced a $20 billion investment package for Pakistan, which includes the development of a petrochemical complex, renewable energy projects and investment in mineral resources. 

“The government of Pakistan is proactively pursuing the promotion and development of indigenous renewable energy resources through private parties’ participation,” Jabbar said, adding that the cooperation with Saudi Arabia is going to help the Pakistani government achieve its targets of 25 percent renewable energy share in the total energy mix by 2025 and 30 percent by 2030.

The targets are set in the Alternative and Renewable Energy Policy 2019 (ARE Policy 2019).


Pakistan PM orders strategy to improve project execution as multilateral lenders propose reforms

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Pakistan PM orders strategy to improve project execution as multilateral lenders propose reforms

  • Shehbaz Sharif says he will personally lead a steering committee to speed up priority projects
  • Four working groups proposed to streamline approvals, procurement, land issues and staffing

ISLAMABAD: Prime Minister Shehbaz Sharif on Monday directed officials to draw up a detailed strategy to improve the planning and execution of development projects, saying he would personally chair a steering committee aimed at ensuring timely and transparent completion of priority schemes.

The move came during a meeting where the World Bank and Asian Development Bank presented recommendations to the government on strengthening project implementation.

According to the prime minister’s office, participants received a briefing that said project approvals involve multiple steps and need simplification, while timely procurement and better readiness tools could also help accelerate implementation.

“National projects of critical importance must be completed transparently and on time,” Sharif told officials, according to the statement. “This is our priority.”

He said the federal and provincial steering committee on development-sector reforms would be headed by him.

The statement said four working groups were also proposed during the meeting: one to review approval and preparation processes, a second to modernize procurement, a third to address land acquisition and resettlement challenges, and a fourth to focus on human-resource alignment and staff deployment for development schemes.

Sharif thanked the World Bank and Asian Development Bank for their support and said development projects must be aligned with the objectives of Pakistan’s Public Sector Development Program (PSDP) and provincial Annual Development Plans (ADPs).

The meeting was attended by senior federal ministers, provincial representatives, senior civil servants and the country directors of both multilateral lenders.