Pakistan is gifted with many resources. Pakistan has the capacity for 55,000 MW hydel power, while more than 50,000 MW of wind and Solar power can be established here. Oil, gas and minerals are also being discovered in vast quantities. But to exploit all these resources, Pakistan would need to establish new infrastructure and companies to manage the process. All of which requires extensive funding.
Till date, for such projects, Pakistan would need to apply for loans from international banks, which have hefty and strict interest payments, which is against our religion, Islam. But there are other options for securing such funding locally, while also helping securing the future of many Pakistani’s.
Energy projects, like Hydro power plants, are considered low risk green projects, as investing in them means, a return for 50 years on the investment, with very little risk of losing the investment. Pakistan has the potential for 55,000 MW hydro power projects. All of these can be financed locally.
The total required funding for a Hydro power plant project should be divided into shares of fixed value, which should be sold through stock exchange or IPO to citizens of Pakistan. These shares will provide a steady return for the investors and can act as family insurance or pension investment for many families for decades in the future.
The same process can be repeated for oil, gas, solar and wind energy projects or any other project where the infrastructure can provide steady return for investors. And using this method to fund the projects will help Pakistan reduce yearly interest and also save us from the clutches of crippling loan providing International banks.
ENGR. MUHAMMAD BASEER KHAN,
Peshawar, August 12.