IEEJ：July 2017 © IEEJ2017

Energy Department

JICA
KNOWLEDGE CO-CREATION PROGRAM(GROUND & REGION FOCUS)
Energy Policy (A)JJFY 2017
NOJ1704076/ ID. 1784584
Course Period in JJapan:p
From Mayy 31st 2017 to JJune 30th 2017

IEEJ：July 2017 © IEEJ2017

COUNTRY REPORT“PAKISTAN”
PAKISTAN
BY:

AGHA HASSAN RAZA
Director Electricity
Energy Department, Government of Balochistan, Pakistan

IEEJ：July 2017 © IEEJ2017

Energy Department

IEEJ：July 2017 © IEEJ2017

Energy Department

1. General Information

IEEJ：July 2017 © IEEJ2017

Energy Department

FLAG OF PAKISTANIEEJ：July 2017 © IEEJ2017

IEEJ：July 2017 © IEEJ2017

Energy Department
PAKISTAN▪ Location:▪ Southern Asia,
Asia bordering the Arabian Sea,
Sea between
India on the east and Iran and Afghanistan on thewest and China in the north.

IEEJ：July 2017 © IEEJ2017

1) Country Profile▪ FullF ll name:

I l i Republic
IslamicR
bli off P
Pakistanki▪ Population:

188.9 million (2015)(Source: World Bank, US Census Bureau)▪ Number of Households

34.7 million (2016)(Source: National Statistics Office)▪ Capital:

Islamabad▪ National Language:

Urdu

j Religion:g▪ Major

Islam ((95%))▪ Life expectancy:

67 years▪ Monetary unit:

Pakistani Rupee

IEEJ：July 2017 © IEEJ2017

Pakistan▪ Main exports:

Textile Products, Rice, Cotton and Leather
goods▪ GDP estimate 2017

$ 313.6381 Billion(Nominal-2017)()$ 1.061 trillion(PPP,2017)▪ Per capita$1,584 (Nominal, 140th 2017)$5,340 (PPP,133rd 2017)▪ President:

Mamnon Hussain▪ Prime Minister:

Mian Mohammad Nawaz Sharif

IEEJ：July 2017 © IEEJ2017

GEOGRAPHY▪ Location:
Li▪ Southern Asia, bordering the Arabian Sea, between India on the east and Iran and
Afghanistan on the west and China in the north.

▪ Geographic coordinates:

30 00 N, 70 00 E

▪ Area:796,095 Sq.Km, (Land 96.86% Water 3.14%)▪ LandL d boundaries:bd i

T t l 7,257
Total
7 257 KmK

▪ border countries:

Afghanistan, 2,670 Km, China 438 Km
India 3,190 Km, Iran 959 Km▪ Coastline:l1,046 Km▪ Climate:▪ Mostly
y hot,, dry
y desert;; temperatepin northwest;; arctic in north.

IEEJ：July 2017 © IEEJ2017

GEOGRAPHY▪ ElevationEli extremes:▪ Lowest point: Indian Ocean 0 m▪ Highest Point K2 (Mt. Godwin-Austen) 8,611 m▪ Natural resources:▪ Land, extensive natural gas reserves, limited petroleum, coal, iron ore, copper, salt,
limestone.

▪ Irrigated land:▪ About 25% of Pakistan’s total land area with the largest irrigated network in the world.

▪ Environment
E i– current issues:i▪ Water pollution from raw sewage, industrial wastes, and agricultural runoff; limited
natural fresh water resource; a majority of the population does not have access to potablewater; deforestation; soil erosion; desertification

IEEJ：July 2017 © IEEJ2017

People▪ Age
A structure:t t▪ 0-14 years: 41%, 15-64 Years: 55%, 65 years and over: 4%▪ Population growth rate:

1.45% (2016 est.)▪ Birth rate:

22.3 births/1,000 population (2016 est)

▪ Death rate:

6.4 deaths/ 1,000 population (2016 est.)▪ No of Households:

34 7 million (2016)34.7▪ Nationality:

Pakistani▪ Ethnic groups:▪ Punjabi 48%, Sindhi 12%, Siraiki (a Punjabi bariant) 10%, Pashtu 8%, Urdu (Official) 8%, Balochi 3%,
Hindko 2%, Brahvi 1% English (Official language of most government ministries), and other 8%▪ Literacy:yTotal ppopulation:p
57.9% (Male(69.5% Female 45.8% ((2015 est).
)IEEJ：July 2017 © IEEJ2017

Basic Facts▪ Parliament consists of 02 Houses i.e.
▪ The Senate ( Upper House) having 104 members &y ((Lower House)) having
g 342 members.
▪ The National Assembly▪ National Flag: It is dark green with a white vertical bar, a white crescent & a five
pointed star in the middle. It symbolizes Pakistan profound commitment toIslam & religious minorities.
minorities▪ National Anthem approved in Aug 1954, verses composed by Hafeez Jallundhri,
its duration is 80 seconds.
▪ National Flower:

Jasmine▪ National Tree:

Deodar (Cedrus Deodara)IEEJ：July 2017 © IEEJ2017

Basic Facts▪ National Animal:

Markhor▪ National Bird:

Chakor (Red-legged partridge)▪ National Game:

Hockey▪ Major Cities:

Islamabad, Lahore, Karachi, Peshawar,
Quetta, Rawalpindi, Hyderabad, Multan,
Abbottabad.

▪ Tourist Resorts:

Murree, Swat, Kalam, Kaghan, Chitral,
Gilgit Ziarat,
Gilgit,Ziarat▪ Major Sports:

Hockey, Cricket, Squash.

IEEJ：July 2017 © IEEJ2017

CULTURAL HERITAGE▪ The
Th landl d whereh
P ki
Pakistani situatedisid todayd had
h d beenba seat off world’s
ld’ leadingl diCivilizations. Some of the archaeological findings suggest presence of
civilization as old as 14 M years.
▪ The
Th Cultural
C lt l Heritage
H it
off Pakistan
P ki ti spreadisd over theth centuries
t i & may bebsummarized in the periods.
▪ Indus Civilization About 8000 years B.C.
▪ Gandhara Civilization 2nd Century B.C till 10th Century A.D.
▪ Islamic Period 712 – 1762 A.D.
▪ Sikh Period 1762-1849 A.D▪ British Period 1857 to 1947 A.D

IEEJ：July 2017 © IEEJ2017

2) Economic Indicators▪ GDP – Real growth rate:

4.2% (2015)▪ GDP – composition by sector:

Agriculture: 25.5%, Industry: 19%% (2015(
est).
)
Services 55.5%▪ Population below Poverty line:

11% (FY 2016-17)▪ Imports:$ 45.83 Billion (2015 est.)▪ Exports:$ 23.34 Billion (2015 est.)▪ Inflation rate (consumer prices):

3 7% (Feb: 2017)3.7%▪ Unemployment rate:

6.5% (2015 est.)IEEJ：July 2017 © IEEJ2017

ECONOMY▪ Industries:

Textiles, Food Processing, Beverages,
Construction Materials, Clothing, Paper
Products, Shrimp.

▪ Industrial production growth rate:

6.99% (Jan 2017 est.)▪ Electricity – Production:

109.26 trillion Wh (2015-16)▪ Electricity – production by source:

Fossil Fuel:
Hydro:
Nuclear:▪ Electricity – Consumption:

90.36 trillion Wh (2015-16)

64%
30%
5%

▪ Electricity – Consumption per capita: 970 kwh/ per capita (2015-16)

IEEJ：July 2017 © IEEJ2017

ECONOMY▪ Agriculture:
A i l

Cotton, Wheat,
C
Wh
Rice,
Ri S
Sugarcane, Fruits,
F i
Vegetables; Milk, Beef, Mutton, Eggs.

▪ Exports – Commodities:

Cotton, Fabrics, Yarn, Rice and other
Agricultural Products.
Products▪ Exports – Partners:

US 13.6%, European Union 18.2%, China
11.7%, Afghanistan 7.6%,(FY 2011-12)▪ Imports – Commodities:

Machinery, Petroleum, Petroleum
Products, Chemicals, Transportation
Equipment, Edible Oils, Grains, Pulses,
Flour.

▪ Imports – Partners:

European Union 10.4%, China 17%, UAE 15%,
Kuwait 8.8%, Saudi Arabia 8.5%, Malaysia
4.8% (FY 2014-15)

IEEJ：July 2017 © IEEJ2017

ECONOMY▪ Currency:

1 Pakistani Rupee (PKR) = 100 paisa▪ Exchange rates:

US$1 = PKR 104.80 (May 2017)▪ Fiscal Years:

1st July – 30th June

▪ Population:

188.9 million (2015)(Source: World Bank, US Census Bureau)▪ Number of Households

34.7 million (2016)(Source: National Statistics Office)IEEJ：July 2017 © IEEJ2017

Energy Department

2. ENERGY RESERVESIEEJ：July 2017 © IEEJ2017

COAL RESERVES
RegionCoal(Billion Tonnes)

Province Sindh: Lakhra, SondaThatta, Jherruck, Thar, Haji Coal others

184.623

Province Punjab: Eastern Salt Range, Central Salt Range, Makerwal

0.235

Province Balochistan: host-Sharig-Harnai,Sor Range/Degari, Duki,
Mach- Kingri, Musakhel Abegun, Pir Ismail Ziarat,Chamalong

0.217

Province Khayber Pakhtoon Khawan:

0.091

Azaad Jamoo Kashmir:

0.009
Grand Total

185.175

IEEJ：July 2017 © IEEJ2017

Natural Gas Reserves▪ The recoverable reserves of natural gas have been estimated at 29.671 trillion
cubic feet (January 1st 2009).

▪ During July-March 2008-09 the production was 3986.5 million cubic feet per day
as compared to 3965.9 mmcfd during the corresponding period last year
showing an increase of 0.52%.

IEEJ：July 2017 © IEEJ2017

Energy Reserves▪ Oil

68,670 bbl/d▪ Coal185.175 Billion Tonnes▪ Natural Gas

29.671 trillion cubic feet

IEEJ：July 2017 © IEEJ2017

Energy Department

3 CURRENT ENERGY POLICY AND
3.
MEASURESIEEJ：July 2017 © IEEJ2017

Current Energy Policies• Federal Power Generation Policy 2002
• Federal Renewable Energy Policy 2006
Co-Generation
Generation Policy• Federal Bagasse Based Co
2008• FederalF d l Energy
E
PolicyP li 2013• Power Generation Policy 201525

IEEJ：July 2017 © IEEJ2017

Measures▪ The energy policy of Pakistan is formulated and determined by the federal,provincial, and local institutional entities in Pakistan, which address the issuesof energy production, distribution, and consumption of energy, such as gas andpetroleum standards.
standards
Energy Policy requires the proper legislation,
legislationinternational treaties, subsidies and incentives to investment, guidelines forenergy conservation, taxation and other public policy techniques.
▪ To provide sufficient Power Generation Capacity at the least cost.
cost▪ To encourage and ensure exploitation of indigenous resources.
▪ To
T ensure thatth t allll stakeholders
t k h ld
are lookedl k d after
ft in
i the
th
situation.
gg the environment.
▪ To be attuned to safeguarding

process; a win-win
ii

IEEJ：July 2017 © IEEJ2017

Scope of the Power Policy▪ Private Sector Power Projects.
▪ Public Sector Power Projects, where required by the Project Sponsor.
▪ Public – Private Partnership (PPP) Power Projects.
▪ Power projects developed by the Public sector and subsequently divested.

IEEJ：July 2017 © IEEJ2017

Energy Department

POWER POLICIESPower Policy 2002 (Federal)▪ This Policy deals with all type of fuels vis-à-vis Thermal, Hydel Coal etc. atjabove 50 MW Capacity.
pyFederal Level for Projects▪ Private Power and Infrastructure Board (PPIB) at Federal level administers thisPolicy.
Renewable Energy Policy 2006 (Federal)▪ This Policy deals with renewable energy projects vis-à-vis Wind, Biomass,
Geothermal Solar,
Solar Hydropower (<50 MW),MW) Biodiesel,
Biodiesel etc.
etc at Federal Level▪ Alternative Energy Development Board (AEDB) administers this Policy.

IEEJ：July 2017 © IEEJ2017

Energy Department

POLICY FOR POWER GENERATION 2002
SALIENT FEATURES▪ Project on BOOT basis and Term could be up to 50 years.
▪ Exemption from corporate income tax, turnover tax and withholding tax, noy 5%% concessionaryy Importp
Dutyy on pplant & equipmentq pnotsales tax,, only
manufactured locally.
▪ GOP Guarantees obligations of power purchaser and provinces.
▪ GOP provides protection against Political Force Majeure, change in law andChange in duties & taxes▪ Power purchaser to bear hydrological / Geological risks for hydropower
projects.

IEEJ：July 2017 © IEEJ2017

Energy Department

POLICY FOR POWER GENERATION 2002
SALIENT FEATURES▪ Payment of compensation in case of termination due to GOP default▪ Tariff adjustments for variation in currency exchange rates and Cost Escalation.

▪ Government ensures conversion of Pak Rupee & remittance of foreign exchange
for project-related payments.

IEEJ：July 2017 © IEEJ2017

Energy Department

RENEWABLE ENERGY POLICY 2006
SALIENT FEATURES▪ Wind Risk / Hydro Risk borne by purchaser▪ Guaranteed Electricity purchase▪ Grid provision is the responsibility of the purchaser▪ No Import Duties on Equipment Zero Sales Tax▪ Net Metering▪ Banking and Wheeling Provisions

IEEJ：July 2017 © IEEJ2017

Energy Department

4 P
4.
Pastt E
Energy D
Demandd andd SupplySl (at( t least
l t
past 10 years)

IEEJ：July 2017 © IEEJ2017

1) Energy Demand by Sector
Oil / Petroleum (Tonnes)
Households

Industry

Agriculture

Transport

Power

Others
Govt:

Total

2002 03
2002-03282 521282,521

1 604 068
1,604,068

196 747
196,747

8 082 273
8,082,273

6 019 958
6,019,958

266 387
266,387

16 451 954
16,451,954

2003-04

231,459

1,493,080

183,506

8,464,042

2,739,763

309,263

13,421,113

2004-05

192,750

1,542,398

142,062

9,024,783

3,452,581

316,686

14,671,260

2005-06

128,651

1,681,517

81,896

8,156,831

4,218,982

358,807

14,626,684

2006-07

106,148

1,595,981

97,232

7,981,893

6,740,559

325,318

16,847,131

2007-08

120,961

1,071,191

109,351

9,384,482

7,083,933

310,501

18,080,419

2008-09

97,332

969,193

69,793

8,837,197

7,570,418

367,266

17,911,199

2009-1090,312

984,690

58,0728,860,880

8,814,274

323,472

19,131,700

2010 112010-1185 44985,4491 355 443
1,355,443

40 59740,597

8 892 268
8,892,268

8 138 956
8,138,956

373 794373,794

18 886 507
18,886,507

2011-1261,884

1,141,397

21,215

6,832,937

5,608,785

213,127

13,879,345

Fiscal YearIEEJ：July 2017 © IEEJ2017

1) Energy Demand by Sector
Gas (mm cft)

335,636

CNG(Transport)
164,968

872,264

185,350

469,738

193,395

1,035,560

190,409507,398

226,116

Fiscal Year

Households

Commercial

CementFertilizer

Power

2002-03

153,508

22,776

3,445

180,611

2003-04

155,174

24,192

7,711

2004-05

172,103

27,191

13,383

Total

1,136,600
2005-06

171,10929,26915,335

198,175

491,766

278,846
1 184 500
1,184,500

2006-07

185,533

31,375

14,686

193,682433,672

306,600

2007-08

204,035

33,905

12,736200,063

429,892

322,563

1,165,548
1,203,194
2008 09
2008-09

214 113214,11335 53635,536

7 305
7,305

201 100
201,100

404 140
404,140319 003
319,0032009-10219,382

36,955

1,944

220,124

366,906

333,508

1,181,197
1,178,819
2010-11232,244

36,466

1,378

228,460

337,401

291,667
1,127,616

2011-12

261,915

39,627

1,266

211,828

358,381

119,000

992,017

IEEJ：July 2017 © IEEJ2017

1) Energy Demand by Sector
Electricity (Gwh)
FiscalYear

Traction

HouseholdCommercial

Industrial

Agriculture

Street
Light

Other

Total

2002-0310

23,624

3,218

16,181

6,016

244

3,363

52,656

2003-04925,846

3,689

17,366

6,669

262

3,650

57,491

2004-0512

27,601

4,080

18,591

6,988

305

3,750

61,327005 06
2005-0613
3

30,720
30,7
0

4,730
,730

19,803
9,803

7,9499
7,9

353

4,035
,035

67,603

2006-0712

33,335

5,363

21,066

8,176

387

4,373

72,712

2007-088

33,704

5,572

20,729

8,472

415

4,500

73,4002008-095

32,282

5,252

19,330

8,795

430

4,277

70,371

2009-102

34,272

5,605

19,823

9,689

458

4,499

74,348

2010-111

35,885

5,782

21,207

8,971

456

4,797

77,0992011-121

21,801

8,548

4,590

76,76035,5895,754

478

IEEJ：July 2017 © IEEJ2017

1) Energy Demand by Sector
Coal (metric tonne)
Fiscal Year

Household

Power

Brick Kilns

CementTotal

2002-03

1.1

203.6

2,607.0

2,078.2

4,889.9

2003 04
2003-04

10
1.0

184 9
184.9

2 589 4
2,589.4

3 289 2
3,289.2

6 064 5
6,064.5

2004-05..

180.0

3,906.7

3,807.2

7,893.8

2005-06..

149.3

4,221.8

3,342.8

7,714.0

2006-07

1.0

164.4

3,277.5

4,451.2

7,894.1

2007-08

1.0

162.0

3,760.7

6,186.9

10,110.6

2008-09

0.8

112.5

,
3,274.8

5,001.8,

8,389.9,

2009-10..

125.5

3,005.2

5,007.8

8,138.5

2010-11..

96.5

3,003.6

4,617.1

7,717.1

2011-12..

104.6

3,108.2

4,456.9

7,669.7

IEEJ：July 2017 © IEEJ2017

3 Energygy Prices
Ave Cost of Generation(Rs/kwh)
FY14

FY15

H d l
Hydel

Total Generation(in 000 Gwh)

%age Share in
Generation

FY14

FY15

FY14

FY15

32 2
32.2

32 6
32.6

32 9
32.9

32 5
32.5

RFO

16.0

12.4

36.0

31.7

38.5

33.2

Gas

4.8

4.7

19.0

22.5

20.1

23.3

HSD

22 2
22.2

17 4
17.4

16
1.6

29
2.9

17
1.7

31
3.1

Coal

4.0

4.5

0.1

0.1

0.1

0.1

Nuclear

1.3

1.2

4.4

5.0

4.8

5.4

Import
p
Iran

10.2

10.1

0.4

0.5

0.4

0.5

Mixed

9.3

8.2

1.1

1.3

1.2

1.5

0.3

0.5

0.3

0.5

100

100

Wind
(Avg/Total)

7.7

5.9

95.2

96.7

Transmission Losses

0.2

0.1

-2.3

-2.1

Net Delivered

8.0

6.1

92.8

94.9

FPA Variation(Rs/Kwh)

2.8

-1.8

FPA=Average Fuel Price Adjustment; RFO=Residual Fuel Oil or Furnace Oil; HSD=High Speed Diesel(Source: NEPRA)IEEJ：July 2017 © IEEJ2017

Energy Department

5 O
5.
Outlook
tl k off energy ddemandd and
d supplyl (2020,(2020
2030, and 2050 if possible)

IEEJ：July 2017 © IEEJ2017

Outlook of energy demand and supply
Financial Yearending 30th June

NTDC Peak Demand(MW)

Capacity Addition per year in
NTDC System (MW)

Total Installed Capacity per
year (MW)2015

21,701

1,504

22,928

2016

23,711

689

23,6172017

24,871

6,643

30,2602018

26,105

9,961

40,221201927 40827,408

1 279
1,279

41 50041,5002020

28,773

4,580

46,0802021

30,156

2,200

48,280IEEJ：July 2017 © IEEJ2017

Future Generation Mix
S. No.

Description

1
2
3
4
5
6
7
8
9

Hydel
Thermale aDom. Coal
Imp. Coal
I
Imp.
LNG
NuclearImportp
BaggaseWind & Solar
Total

Total Installed Capacity (MW)Existing
7,097
13,370
3,370
150
‐
‐
1,005
‐
146
1,034

2018‐19
12,08913,370
3,370
810
3,300
3 600
3,600
2,445
‐
850
2,231

2021‐22
12,08913,370
3,370
4,440
6,103
3 600
3,600
3,545
1,000
919
4,732

2024‐25
27,196
13,370
3,370
8,400
6,103
3 600
3,600
4,645
1,000
919
6,582

22 80222,80238 69538,69549 79849,79871 81571,81540

IEEJ：July 2017 © IEEJ2017

Power Balance at Normal Demand Growth Rate

41

IEEJ：July 2017 © IEEJ2017

Generation Mix ‐ Existing (21222 MW)
Gas/RFO
59%
Hydel
31%

Bagasse1%

RE(Wind & Solar)

5%

Nuclear4%

Domestic
D
ti C
Coall
0.22%

IEEJ：July 2017 © IEEJ2017

Generation Mix 2019‐20 (41358 MW)
Gas/RFO
33%

R‐LNG
9%
Hydel
24%

Bagasse2%

Imported Coal
13%
RE(Wind & Solar)

10%

Nuclear3%

Domestic Coal
6%

IEEJ：July 2017 © IEEJ2017

Generation Mix 2021‐22 (49138 MW)
Gas/RFO
27%
R‐LNG
7%

Hydel
25%

Imported Coal
11%

Bagasse2%

Domestic Coal
9%
RE(Wind & Solar)

10%

Import2%

Nuclear
7%

IEEJ：July 2017 © IEEJ2017

Generation Mix 2024‐25 (71815 MW)
Gas/RFO
19%

Hydel
38%

R‐LNG
5%

ImportedCoal
9%

Domestic Coal
11.56%

Bagasse1%
RE (Wind&Solar)
9%

Import1%

Nuclear
6%

IEEJ：July 2017 © IEEJ2017

Energy Department

6 E
6.
Energy – Related
R l t d investment
i
t
t for
f domesticdti
and overseas

IEEJ：July 2017 © IEEJ2017

ENABLING POLICIES & INCENTIVESREGULATORY STRUCTURE

REGULATORY FRAMEWORK• National Power Regularity Authority (NEPRA)• Generating Licenses• Independent Power Producers (IPPs)• Central Power Purchase Agency (CPPs)• Co-Generation

CONTRACTUAL MECHANISM• Guaranteed power purchase from IPPs
• Upfront tariffs• Sovereign Guarantees• Standardized
St d di d Implementing
I lti Authorities
A th iti• Power Purchase Agreements
47

IEEJ：July 2017 © IEEJ2017

ENABLING POLICIES & INCENTIVESFINANCIAL & FISCAL INCENTIVESATTRACTIVE RETURNS• Ave. 17% RoE on Renewable Energy projects
CUSTOMS DUTY EXPEMTION• 5% on import of Plant & Equipment not manufactured
locally• No Duties on Renewable Energy Plants & Equipment

48

IEEJ：July 2017 © IEEJ2017

ENABLING POLICIES & INCENTIVESFINANCIAL & FISCAL INCENTIVESTax Exemptions;• Exemption from Income Tax• Exemption from Turnover tax and• Exemption from Withholding tax on imports

49

IEEJ：July 2017 © IEEJ2017

INVESTMENT INITIATIVES(Coal based Power Projects)
 At present, various local and imported coal based IPPs are under process with Private
Power and Infrastructure Board (PPIB), most of which are being developed under the
China Pakistan Economic Corridor (CPEC) PPIB,
PPIB after
f consultationl i withi h theh stakeholders,k h ldh finalizedhasfi li d andd sharedh d SecurityS
i Package
P kDocuments with the Sponsors (Implementation and Power Purchase Agreements)

 Moreover,Moreover the total potential of Thar is estimated at 175 billion tons of lignite coal which
may be sufficient to produce 100,000 MW electricity for 200 years

 NPERA has alreadyy announced UpfrontpTariff for Indigenousg
Coal based Projectsj Investors are encouraged to participate in development of power projects based on Coaland also propose new projects based on CoalIEEJ：July 2017 © IEEJ2017

AREAS OF INVESTMENT / COOPERATION▪ Direct Foreign Investment (DFI):
Investors may invest in RE power projects such as wind, solar,
biomass, waste-to-energy and small hydel power projects as an
IPP on unsolicited mode / raw sites. Government of Pakistan
would
ld provide
id fullf ll facilitation
f ilit ti
t thetoth companies
i throughth
h AEDB
under the Renewable Energy Policy 2006.

Geothermal Energy
Pakistan has prospective geothermal sites with possible
potential of pppower ggeneration. However, detailed resource
assessment of the sites needs to be carried out. Preliminary
information of the sites is available with Geological Survey ofPakistan.

IEEJ：July 2017 © IEEJ2017

AREAS OF INVESTMENT / COOPERATION▪ Financing/Lending for Renewable Energy Based Power Projects:
Banks and financing institutions may finance the commercial
renewable energy projects in Pakistan through debt financing or
equity sharing or both.
▪ Collaboration
C ll bi in
i Manufacturing:M
fi
OEMs can establish manufacturing facilities or collaborate withgg industries for manufacturing
g of Alternative
Pakistani engineering
Energy (AE) / Renewable Energy (RE) products such as windturbines and its components, solar panels, hybrid inverters, control
boxes, solar thermal equipment, solar water pump/motors etc.
▪ Distributed Generation
Installation of renewable energy based distributed generation for
direct sale to consumers or as Energy Service Companies (ESCO) by
setting up mini private grids.

IEEJ：July 2017 © IEEJ2017

ALTERNATIVE & RENEWABLE ENERGY POTENTIALI
P t ti l off Immense
Potential

•

Wind

•

Solar

•

Biomass•

Waste-to-Energy•

Small hydro (less than 50 MW)•

Geothermal•

Biofuels• Initial macro level resource maps for wind and solar developed by NREL (USA).
(USA)• Resource mapping and spatial planning of solar , wind and biomass energy resources
has been initiated with the support of the World Bank Resource Mapping Initiative.
* BasedBd on NREL studyt d conductedd t d iin 2006.

IEEJ：July 2017 © IEEJ2017

IEEJ：July 2017 © IEEJ2017

FUTURE PROSPECTS OF SOLAR ENERGYIN PAKISTAN

On-Grid Large Scale Solar Power
Projects
 Development of solar on-grid power
projects
 Plans to add 2500-3000 MW solar power
generation
ti in
i nextt 5-6
5 6 years.

IEEJ：July 2017 © IEEJ2017

IEEJ：July 2017 © IEEJ2017

INCENTIVES OFFERED(By Government of Pakistan)N custom’sNot ’ dutyd t or sales
l tax
t on importit off equipmentitNo Income Tax / withholding tax / turnover tax
Repatriation of Equity along with dividends freely allowed
Mandatory purchase of electricity by power purchaser Government’s Sovereign Guarantee Mandatory purchase of electricity from RE projects

IEEJ：July 2017 © IEEJ2017

Energy Department

7 M
7.
Major
j diffidifficulties
lti andd bottlenecks
b ttl
k currentlytl
faced in formulating energy policies

IEEJ：July 2017 © IEEJ2017

Major difficulties and bottlenecks currently
faced in formulating energy policies▪ The energy policy of Pakistan is formulated and determined by the federal,provincial, and local institutional entities in Pakistan.
gy Policy
y requiresqthe pproperp legislation,g, international treaties,, subsidies▪ Energy
and incentives to investment, guidelines for energy conservation, taxation andother public policy techniques.
▪ Policy implementation recommended by AEDB,AEDB Water & Power Ministry (aspolicy enforcer), the NEPRA regulates the energy sources network as well as
determining the financial prices of the usage of energy.

IEEJ：July 2017 © IEEJ2017

Energy Department

8 Subjects
8.
S bj t you would
ld likelik tto studyt d iin th
the orderdof priority and the reason

IEEJ：July 2017 © IEEJ2017

Subjects you would like to study in the orderof priority and the reason▪ I would like to discuss and amend our Power Policy w.r.t our needs▪ Proposed amendments in the Power Policy as of current situation▪ Energy Demand and Forecasting▪ Energy Supply forecastingIEEJ：July 2017 © IEEJ2017

Contact :report@tky.ieej.or.jp