Keeping it important for investment where China is
fully involved in. With this major development, the United States has expressed
interest in investing in energy projects under the multibillion-dollar
China-Pakistan Economic Corridor (CPEC) to bring stability and prosperity to
the region.
“If the corridor proceeds according to plan, it will be in the interest
of Pakistan, China and the US as well. We support the corridor,” said
USAID-Pakistan Mission Director John Groarke while talking to a group of
journalists on Thursday.
Pakistan and China had signed an agreement on April 20 this year to
commence work on CPEC development projects worth over $46 billion, which comes
to roughly 20 per cent of Pakistan’s annual GDP.
The corridor aims to connect Gwadar port in Balochistan to China’s
Xinjiang region via a network of highways, railways and pipelines spread over
3,000km. Work on several sections has already started but the entire project is
expected to take several years to complete.
“While Pakistan would benefit immensely from the corridor, the USAID will
have a possibility of investing in the energy sector if everything moves in the
direction the Chinese are pursuing,” he said.
(B) US
companies show interest in Pakistan
The top priority of the US, Groarke said, is to invest in the energy
sector and the rehabilitation of people displaced owing to floods, earthquake
and military operations.
Wary of the Chinese getting strategic access to the Arabian Sea and its
presence in the region, the US has reportedly tried several times to persuade
Pakistan against involving China in its development process.
Groarke believed the power sector is moving on the right track and this
is the reason power distribution companies are earning additional revenue. He,
however, stressed that power consumers should pay the full cost of electricity.
Electricity is highly subsidised in Pakistan.
“Privatisation is the best solution for a viable energy sector,” the
USAID country head said. “The US government is committed to helping Pakistan
enhance its power generation.”
Responding to a question, he said the US had already invested in making
the technical, financial and environmental feasibilities of Diamer-Bhasha dam.
The dam is likely to cost around $14 billion with the bulk of funding coming in
primarily from the private sector and multilateral donors like Asian
Development Bank.
About financing coal-based power plants in Pakistan, Groarke said the US
had a policy not to invest in coal-based power generation. “Our policy is to
invest in renewable energy like solar and more importantly energy
conservation,” he added.
He also said the US supported the Pakistani government’s efforts to
increase tax revenue collection.
The USAID official said the US was also investing in the health sector
especially in Sindh. “We have provided scholarships to 7,000 students in
Pakistani schools,” he said, adding that Washington wanted more enrolment of
children in schools.
Appreciating the government’s recent investments in the education sector,
Groarke said the prime minister’s decision to invest 4 per cent of the GDP in education
reflected the priorities of his government.
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