Chinese firm to invest $1.7b to generate low-cost electricity in Pakistan

A prominent Chinese power-generating entrepreneur has said that it will make investment to the tune of $ 1.7 billion for generating low cost hydel electricity in Pakistan.

The assurance for investment was given to President Asif Ali Zardari when a delegation of China International Water and Electricity Corporation (CWE) held a detailed meeting with him here on Friday. “We just met with President Asif Ali Zardari and the talk focused on Bhasha and Kohala Dams”, said Deputy General Manager of CWE Jin Zheping, said talking to media after meeting the President at State Guest House in Beijing.

Jin said for Bhasha Dam CWE was developing concept with Chinese Hydel power generating groups and also with WAPDA as it is a gigantic project. He said the MoU in this regard has already been signed. Jin pointed out that President has shown high vision on cooperative relations in economic sector between the two countries.

The CWE Deputy General Manager said the President has assured that he will particularly welcome Chinese entrepreneurs for investment in Pakistan.

President Zardari specially mentioned that he will steer China-Pakistan trade economic cooperation to encourage Chinese companies to invest and come to Pakistan for setting up of various projects.

CWE has been working on water resources and hydropower engineering for over 50 years. Over the years, the Company has been active in international contracting, foreign economic aid, international trading and manpower export sectors. CWE is recognized one of the major state-owned enterprises in China.

By the end of September 2007, the company has completed over 600 international contracts in more than 60 countries and regions.

The national currency hit a new record low of Rs83.90 against the dollar during trading in interbank here on Friday. The greenback continued to dominate the national currency in the inter-bank market, dealers said on Friday. The American dollar commenced the day’s trading at Rs81.80 and after gaining strength closed at Rs83.90.

On the other hand, dollar was seen trading at Rs85.50 in the open market. According to some reports reaching here, dollar is being sold at Rs87 in some money exchangers also. Forex market dealers told Geo News that everybody was looking for dollar and that is why greenback was gaining value over frequent demand.

Experts warned that people doing short-term investment in dollar might face hug losses as world financial institutions and China could provide US$6 billions to Pakistan. AKD analyst Asad Farid urged on the government to undertake long-term planning for improvement in exports to strengthen the falling economy.