ISLAMABAD: Chief Secretary Gilgit-Baltistan (G-B) has revealed that while China is working on critical infrastructure projects in the region, especially in agriculture, trade, and special economic zones, Chinese investors have expressed concerns about the lack of sovereign guarantees for power projects.
The high tariffs in G-B’s energy sector have further deterred investment from Chinese companies. This issue remains a significant roadblock to expanding energy production in the region, where the summer demand for power exceeds supply by over 100MW.
The demand in the summer reaches 254MW, while local production can only generate 122MW, highlighting the pressing need for new energy projects.
The G-B chief secretary was briefing a meeting of the Senate Standing Committee on Kashmir Affairs and G-B, which was held on Monday under the chairmanship of Senator Prof Sajid Mir at the Parliament House.
Among the most notable energy projects are the 54MW Attabad Hydropower Plant and the 34.5 MW Harpo Hydropower Plant in Skardu. These projects are poised to play a pivotal role in addressing the region’s energy needs and providing clean power to local communities.
The session focused on the immense tourism potential of Azad Jammu and Kashmir (AJK) and G-B, with particular emphasis on ongoing infrastructure developments and strategic policies designed to enhance the region’s tourism sector.
The G-B additional chief secretary provided a comprehensive briefing on the region’s international collaboration. Highlighting key sectors where China is actively involved, the briefing underscored the complexities of energy and tourism development, as well as the need for greater financial support from Islamabad.
The committee was also informed about the operational Tourist Helpline (#1422), designed to assist and guide visitors to the region.
The chief secretary said lack of coordination in the NFC formula has created significant barriers to completing these projects.
In addition to tourism, G-B is struggling with infrastructure limitations. The region’s airports, particularly in Skardu and Gilgit, are unable to handle the volume of tourists. Skardu’s airport, though larger, is still limited, with only ten flights arriving in the summer. Meanwhile, Gilgit faces even more difficulties, with fewer flight connections. A proposal for a new airport in Gilgit is currently under feasibility study, with hopes of improving connectivity for both tourists and local residents.
Additionally, committee was told the Skardu Airport, upgraded to international status in December 2021, is now poised to welcome international flights, further boosting the region’s accessibility to global tourists. The airport currently operates 16 weekly flights connecting key cities such as Islamabad, Lahore, and Karachi.
While the number of tourists in AJK and G-B saw a slight decrease in 2023 (down by 3,990 visitors to a total of approximately 16,130), the committee remains optimistic that the ongoing infrastructure enhancements will significantly attract more visitors in the coming years.
Further, investments in connectivity were also highlighted, including the construction of the Gilgit-Shandur Expressway, a PKR 50 billion project, as well as key entry points to the region such as the Babusar Pass, Khunjerab Pass, and Bisham.
Senator Prof Mir emphasised the significant incentives available for tourism investment in G-B, which is designated as a tax-free zone offering low royalties, affordable electricity, investor facilitation, and a Visa-on-Arrival policy for citizens of 65 countries.
Copyright Business Recorder, 2025
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