Ahmed Khan Malik

The Balochistan government has formulated a comprehensive policy to attract investment in the energy sector, reports WealthPK. The policy focuses on leveraging the province's renewable energy potential, particularly in wind and solar power, to create a sustainable and self-reliant energy infrastructure.

The province is endowed with abundant natural resources, including vast reserves of natural gas, coal, and minerals. However, despite this abundance, a significant portion of its population still lacks access to electricity. Recognizing the urgent need to address these challenges and stimulate economic growth, a policy has been devised, Siraj Tareen, Director of the Energy Department, told WealthPK.

Balochistan's policy to attract investment in the energy sector represents a pivotal step toward addressing its energy deficits and promoting sustainable economic development. By focusing on renewable energy potential, providing clear policy frameworks, offering targeted incentives, and enhancing infrastructure, the province is positioning itself as a promising destination for energy investments.

He pointed out that Balochistan's unique geographical landscape offers immense potential for renewable energy development. The coastal regions, especially areas like Gwadar, experience consistent wind patterns, making them ideal for the wind energy projects. Additionally, the province's arid climate ensures high solar power generation.

Harnessing these renewable resources can significantly reduce the province's reliance on fossil fuels and provide clean, affordable energy to its residents, Tareen said. He noted that establishing a transparent regulatory environment is crucial for attracting investors. The government has outlined clear guidelines and policies that support renewable energy projects, ensuring that investors have a predictable and stable framework within which to operate.

To make investments more attractive, the government offers targeted incentives, including tax breaks, subsidies, and favorable tariffs for wind and solar energy projects. These incentives are designed to reduce the initial capital burden on investors and encourage the development of renewable energy infrastructure.

Recognizing that the lack of infrastructure could be a significant barrier to investment, he said the government is prioritizing the development of essential facilities such as grid connectivity and transmission lines. Improving infrastructure ensures that the energy produced from renewable sources can be efficiently integrated into the national grid and distributed to consumers.

Given the province's low population density and dispersed settlements, decentralized micro-grids present an effective solution to energy distribution challenges. These localized grids can provide reliable power to remote communities, reducing transmission losses and ensuring energy access in hard-to-reach areas, Siraj told WealthPK.

However, despite these proactive measures, Balochistan's efforts to attract foreign investment still face challenges, he said. To counter these challenges, the government is actively working to build trust with international investors by ensuring transparency, strengthening security measures, and engaging in diplomatic efforts to highlight the province's commitment to fostering a conducive investment environment, said the Energy Department director.

Credit: INP-WealthPk