Bhasha dam, KCR project may be affected: Japan no longer considering investing: diplomat

WASIM IQBAL

ISLAMABAD: The government of Japan is no longer considering investment in major hydroelectric projects such as Diamer-Bhasha dam and revival of Karachi Circular Railway (KCR) because of financial constraints, a Japanese diplomat said on Friday.

The KCR project, costing Rs140.2 billion, was recently approved by the Executive Committee of National Economic Council (Ecnec).

An official of the embassy of Japan told media persons that these projects required huge funding and the government of Japan was not in a position to finance these projects. Responding to a question regarding Bhasha dam, he said that Japan was not interested in investing in the construction phase of the dam. “It may invest in the power generation phase in future, depending on the situation,” he added.

The official also said that Japan International Cooperation Agency (Jica) has held a comprehensive study regarding the viability of Karachi Circular Railway, but had not yet reached any final conclusion, because it “also requires huge funding”.

Pointing out inconsistencies in policies of Pakistani government, he said: “This takes Pakistan out of the scope of Japanese companies.”

He said Japanese firms working in Pakistan were facing a “lot of problems”

According to him, the Board of Investment (BOI), which should act as a facilitator for foreign investors, “has no action plan”.

The government of Japan, he said, had deputed a Japanese expert in the BOI who was working on capacity-building of staff so that they could attract foreign investment.

He said that companies were unable to benefit from Port Qasim as there “is no road network to access the port…absence of infrastructure is another reason”.

The embassy, he said, was receiving complaints from Japanese companies working in Pakistan regarding “absence of any appropriate auto policy, macroeconomic instability, power shortages and recent ban on CNG kits. This has deeper impact on the economic health of companies”.

Despite difficulties, he believed, there was a huge potential to attract foreign investment. “High-skill labour force and growing market is a favourable factor. Similarly, Pakistan has geographical advantage, as it is located on crossroads to India, Afghanistan, Central Asia and the Gulf.”

He said that the government of Japan will soon send business mission to visit Pakistan from October 6-11, to coincide with Expo Pakistan in Karachi.

“This Business Mission will include (representatives of) Japanese companies interested in investing in Pakistan. The objective is to address concerns of companies regarding security, infrastructure, economic policy consistency and lack of marketing.”