ISLAMABAD: One of Pakistan’s largest domestic cement producers, Lucky Cement, will set up a hybrid wind and solar power project under the Special Investment Facilitation Council (SIFC), state media said on Monday.
Private investment is low and declining in Pakistan, which has very low rates of private investment relative to regional and comparable countries, around one-third of the South Asia average, according to World Bank data released in 2023. Private investment declined from an average of 13.7 percent of GDP in the 2000s to around 10 percent in FY21.
The government set up the SIFC last year to attract foreign investment and also create better conditions and remove bottlenecks for domestic companies who have historically faced unfair competition from state-owned entities undertaking commercial operations and received little support when seeking to access new overseas markets.
“Special Investment Facilitation Council is supporting private companies for development of energy sector,” Radio Pakistan reported. “As part of these efforts, Lucky Cement has planned a hybrid wind and solar power project which will generate environment friendly electricity.”
In the past, Lucky Cement has commissioned a 42.8 MW solar power plant in Karachi.
Power consumption in Pakistan has declined 8-10 percent year on year over the past three quarters, according to energy ministry data. Power consumption is a significant economic indicator in the developing economy and another expected decline this year underscores challenges facing the newly elected government in debt-laden Pakistan, amid growing discontent among the poor.
Poor and middle class households are still feeling the impact of the International Monetary Fund’s bailout of Pakistan last year, which contributed to rising retail prices including fuel and electricity charges.
Power cuts are also frequent in Pakistan, especially in far flung rural areas, due to grid issues, delays in importing fuel and hard currency shortages, though the frequency of such outages have reduced in the recent months.
Lucky Cement to set up hybrid wind-solar power plant under Pakistan’s special investment body
https://arab.news/vurcm
Lucky Cement to set up hybrid wind-solar power plant under Pakistan’s special investment body
- In the past, Lucky Cement has commissioned 42.8 MW solar power plant in Karachi
- Power consumption in Pakistan has declined 8-10% year on year in past 3 quarters
Pakistan says Azerbaijan’s SOCAR to finalize oil and gas investment next month
- SOCAR signals February decision after Davos talks, citing Pakistan’s reform momentum
- Existing LNG, fuel supply ties point to deeper Azerbaijan-Pakistan energy cooperation
ISLAMABAD: Pakistan’s finance ministry said on Thursday Azerbaijan’s state energy company SOCAR is set to finalize an investment in Pakistan’s oil and gas sector next month, following high-level engagements on the sidelines of the World Economic Forum in Davos.
The announcement came after a business roundtable chaired by Finance Minister Muhammad Aurangzeb, where SOCAR President Rovshan Najaf told Pakistani officials the company viewed Pakistan as a long-term energy partner, according to a statement from the finance ministry.
Pakistan has been seeking fresh foreign investment into its energy sector as part of broader economic reforms aimed at stabilizing supply, reducing costs and improving contractual transparency. The oil and gas sector, alongside mining and minerals, has been identified by Islamabad as central to energy security and industrial growth.
SOCAR already has a commercial footprint in Pakistan through SOCAR Trading, which supplies liquefied natural gas under a government-to-government framework with Pakistan LNG Limited. Under the arrangement, SOCAR can supply up to one LNG cargo per month without take-or-pay obligations, giving Pakistan greater flexibility in managing demand and pricing. The agreement has been extended into 2025, reflecting continued cooperation.
“SOCAR views Pakistan as a natural long-term energy partner,” Najaf said, according to the finance ministry statement, citing Pakistan’s “market depth, growing energy demand, and ongoing reform momentum in the oil and gas sector.”
He also highlighted SOCAR’s engagement with Pakistan State Oil on petroleum product supply and expressed interest in expanding cooperation across the broader oil and gas value chain as reforms advance.
Welcoming the planned investment, Aurangzeb reiterated the government’s commitment to attracting “strategic and commercially viable investment” in energy, saying reforms were focused on improving pricing transparency, contractual clarity and risk-sharing mechanisms, according to the statement.
SOCAR is a major state-owned energy company operating in more than 20 countries, with a workforce exceeding 66,000 employees and reported revenues of about $50.6 billion in 2024, the ministry said.
Pakistan and Azerbaijan have been deepening economic ties in recent years, with energy cooperation emerging as a key pillar alongside trade and investment discussions. Officials say the expected SOCAR investment would mark a significant step in strengthening bilateral energy links.
