A meeting of the Senate Standing Committee on Kashmir Affairs and Gilgit-Baltistan, chaired by its chairman Senator Sajid Mir at the Parliament House in Islamabad, was informed that GB faced a significant power deficit, with summer demand reaching 254MW against a production capacity of just 122MW. This gap underscores the urgent need for new energy projects.
Senator Zeeshan Khanzada, a member of the committee, highlighted power as one of the region’s biggest challenges. “We must explore solar projects as a solution, particularly for remote areas where hydroelectricity is not feasible,” he suggested.
The meeting also discussed financial allocations for both the Annual Development Programme (ADP) and Public Sector Development Programme (PSDP) for the fiscal year 2024-25 for GB.
Tourism boom in region hampered by climate, infrastructure challengesThe ADP has been allocated Rs20 billion, with Rs7.15bn already disbursed. However, the committee noted an outstanding throw-forward of Rs138bn for the ADP, underscoring the long-term nature of these investments.
The PSDP allocation for the same period stands at Rs13.5bn, including Rs4bn earmarked for prime minister’s initiatives. The PSDP has an outstanding throw-forward of Rs99bn, reflecting the scale and ambition of the federal government’s development commitments to the region.
Among the key energy projects under development are the 54MW hydropower plant in Attabad and 34.5MW hydropower plant in Skardu, which are expected to significantly address the region’s energy needs and provide clean power to local communities.
The GB additional chief secretary briefed the committee on international collaboration in the region, highlighting China’s active involvement in critical sectors such as energy, tourism, agriculture, trade and special economic zones.
However, he pointed out that Chinese investors have raised concerns over the lack of sovereign guarantees for power projects and the high tariffs in GB’s energy sector, which have deterred investment.
Tourism
During the meeting, GB Chief Secretary Abrar Ahmed Mirza highlighted the rising number of tourists in the region, but said that despite this growth, the region faced challenges related to climate change, sustainability and inadequate infrastructure.
To address these issues, GB has developed 10 management plans focused on environmental conservation, with feasibility studies underway for ski resorts, air safaris, and a cable car service. However, the lack of coordination in the National Finance Commission formula has posed barriers to completing these projects.
The region’s airports also face constraints. Skardu airport, though larger, accommodates only 10 flights during the summer, while Gilgit airport struggles with even fewer connections, the meeting was told.
Senator Mir emphasised the significant incentives available for tourism investment in GB, including its status as a tax-free zone, low royalties, affordable electricity, investor facilitation, and a visa-on-arrival policy for citizens of 65 countries.
The committee also recommended granting observer representation to GB and Azad Kashmir in national constitutional discussions to better address their unique needs.
