Caretaker Prime Minister Anwar-ul-Haq Kakar has authorized the Power Division to seek approval of a draft G2G framework agreements summary with Saudi Arabia, United Arab Emirates (UAE), Qatar, and Kuwait from the federal cabinet through circulation, according to well-informed sources.
The cabinet approved several interventions under the Framework Guidelines for Fast-Track Solar PV Initiatives 2022 on October 18, 2022. These interventions aim to expedite the deployment of solar PV projects, including the substitution of expensive imported fossil fuels with solar PV energy.
The initiative involves procuring solar PV-based power generation capacity to replace expensive imported fossil fuels used for power generation.
Additionally, the Framework Guidelines and the Alternative Renewable Energy (ARE) Policy 2019 allow the development of such projects for fuel substitution under Government-to-Government (G2G) mode.
The Government of Pakistan has received interest from the Kingdom of Saudi Arabia, UAE, Qatar, and Kuwait for the development of solar PV projects in Pakistan under G2G mode. Under the Inter-Governmental Commercial Transactions Act 2022 (IGCTA), a G2G agreement will include broad parameters and mechanisms for the execution of intended commercial transactions.
Draft G2G Framework Agreements were prepared for the development of ARE Projects in Pakistan in G2G mode. These agreements were sent to the Ministry of Law and Justice for legal examination and the Ministry of Foreign Affairs for political review.
The draft agreements, after incorporating the comments of the Ministry of Law and Justice, have been shared with the caretaker Prime Minister.
The Power Division proposed approval from the Prime Minister for placing the draft summary before the Cabinet, regarding its concurrence for negotiations and signing the draft agreements with the governments of respective countries, through circulation.
The caretaker Prime Minister has approved the proposal of the Power Division regarding the approval of draft G2G framework agreements with Saudi Arabia, UAE, Qatar, and Kuwait.
