Pakistan seeks U.S. backing for energy projects

Source: Reuters

ISLAMABAD (Reuters) - Pakistan has told the United States it hopes to ease power shortages by renting electricity-generating plants over the next three to five years but wants Washington's backing in a longer-term upgrade and diversification of the country's antiquated power sector.

Pakistan's finance minister, Shaukat Tarin, said after talks on Monday with U.S. President Barack Obama's special envoy that Washington could assist Islamabad by providing financial guarantees to encourage investment in large-scale energy projects that would replace the temporary, rental plants.

U.S. trade promotion agencies like the Overseas Private Investment Corporation and the Export-Import Bank could provide financial backing for some of the projects.

Obama's envoy to Pakistan and Afghanistan, Richard Holbrooke, has said that recent gains by the Pakistani army against militants gave Washington "breathing room" to focus more attention on Pakistan's economic woes.



Read more: http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE57G27E20090817