Archive for the ‘Pakistan’ Category

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Pakistan’s Business Minded President Secures Energy Deals

August 26, 2009

Former leaders from Ayub Khan, Benazir Bhutto, and General Musharraf tried to address the issue of growing energy consumption and diminishing supplies which is now legitimately deemed a “crisis” in Pakistan. President Zardari had his hand in addressing the crisis last week during the quarterly visit to Beijing where he discussed China’s assistance on energy projects. The result is a signed Memorandum of Understanding between both states for the construction of the Bunji dam in the Astore district of Pakistan. Pakistani Ambassador to China, Masood Khan confirmed this dam is one of 8 slotted for priority construction and will have a capacity of generating 7,000 megawatts of electricity. Additionally, Presdient Zardari visited the ambitious Three Gorges Dam and met with Solar Power companies in China this year and enthusiastically invited them to carry out feasibility studies and expertise:

“We need solar power for individual housing units and I want the Chinese to carry out a study in Pakistan,”

As a result, Chinese owned Solar Energy Science and Technology Company expressed a readiness to construct solar power generation projects. Many dams and solar projects targeting the northern areas that are relatively underdeveloped and fairly detached from national infrastructure. But despite being underdeveloped, the region is prime location for generating hydro power and NGO’s have in the past introduced small, community based hydro power stations where usage is limited to basic lighting for residences and had little capacity to produce energy required for income generation. Last weeks deal with China on the other hand might be a more viable route to progress. A case study from India in 2001 demonstrates how an entrepreneur in Chitral installed a “one megawatt hydel power project that changed the socio-economic conditions of the area by providing electricity to run machinery for the manufacturing and processing of local goods. Locally-generated energy then created skilled job opportunities in the power supply system and in workshops for making electric appliances and fixing electric installations.

Applying such construction to the northern areas of Pakistan as per recent deals with China have the potential to spur similar growth. Localized hydel projects with Chinese expertise can bypass a need for  more macro transmission and distribution costs involved with creating larger infrastructure. Time and money are saved if large scale distribution channels to  transmit power are not needed. And because the energy produced would be confined to the area of consumption more expensive centralized power generation and large scale load issues may be avoided.

Plus, Hydropower is cost effective and solar power has fair potential in Pakistan because of the warm climate. 
And with Chinese companies already having begun work on various hydel projects, including the Neelum Jhelum, Gomal Zam and Mangla Rising constructions, President Zardari said he was:

“personally monitoring all ongoing projects being carried out by Chinese engineers and experts in Pakistan, adding that he was holding regular meetings with Chinese ambassador in Islamabad”

So colorful history aside, President Zardari is one of the few, if not first true businessmen turned leaders of Pakistan and it will be great to see the success of his recent bilateral negotiations with China translate to a lasting alleviation of the energy crisis.

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From Energy to Education – Pakistan Has a Few #1 Priorities

August 18, 2009

U.S. Envoy Holbrooke issued a public statement this week acknowledging Pakistan’s “deep rooted” energy problem. He explained that the United States “wanted to send the message that it was concerned about people’s genuine problems”. And the energy problem is in fact among the major problems faced by everyday Pakistanis. In the sweltering summertime, rural areas are faced with prolonged hours of outages, also known as “load shedding” with main cities including the Federal capital suffering 6 to 8 hours daily. This is not only physically unbearable for everyday citizens, but has a profound stalling effect on businesses as it further cripples the already anguished economy. Holbrooke is right then, a genuine attempt to begin resolving the energy crisis would be much welcomed and could in fact help to win the “hearts and minds” of Pakistanis.

This is among the first diplomatic statements issued regarding a funding to help upgrade Pakistan’s power sector and a timeline, or specific details on how such assistance would actually come about were not yet offered. But Pakistani finance minister Shaukat Tarin described in detail how the government could “rent electricity-generating plants over the next three to five years to fill the gap until large-scale energy projects come online and Washington could help by providing financial guarantees to encourage private investment in the sector”. Given the billions of dollars in defense spending Washington has provided Islamabad since 2001, I think Finance Minister Tarin is asking for very, very little here. It would be wise long term strategy for Holbrooke and the Obama Administration to seriously considering delving into this kind of cooperation as it can yield true long term security for the masses of citizens and ultimately, the state.

In addition, Holbrooke announced he would discuss a range of other issues that directly affect the everyday lives of Pakistanis during visit to Karachi on Wednesday. In unison with most diplomatic statements from the United States pertinent to Pakistan these days, Holbrooke’s remarks were overall positive as he expressed confidence in the current democratic regime completing its term and cited a “visible improvement in the political atmosphere” when compared to his past visit.

Amplified cooperation between Washington and Islamabad in combating terrorists is painting a rosy picture of relations these days. News of possible cooperation on funding energy projects is hopeful and on the Pakistani side, Prime Minister Gilani “sought to assuage concerns among western countries about governance and mismanagement issues in Pakistan saying that accountability had been institutionalized”. Many countries are hesitant to allocate funding in fear of a lack of transparency and corruption. But Pakistan has finally addressed this through the first ever independent oversight body: a parliamentary watchdog – Public Accounts Committee of the National Assembly who is appointed from the opposition party. This truly is unprecedented and viable move toward democratic processes. It should actually assuage fears to invest in helping Pakistan at this time. An interesting side note here is that this institutionalized, unprecedented oversight comes as a result of the judiciary and media being independent, which is a policy enacted by former General Musharraff as head of state during his tenure.

Finally, the drone attacks continue to be a point of discussion between the U.S. and Pakistan with Gilani reitering that Washington directly provide Islamabad with the technology so not as to further instigate Anti-Americanism in the region through the widespread collateral/civilian damage that the unmanned predator aircrafts inflict.

So it will be interesting to see statements from Washington in the coming weeks on Pakistan. Funding to help resolve the profoundly distressing energy crisis could be a wonderful opportunity for us to offer real aid to Pakistan. Military aid given since 2001 has been real, and can help for security, but if the Obama administration wants to shift from the previous administrations policies and engage in more meaningful solutions, I think winning the hearts and minds through funding projects that directly affect people is in our long term interest of securing the region rather than only focusing on aid to state level institutions for which trickle down can be painfully slow.