Objectives and Policies


In the face of rising energy crisis and escalating cost of fossil fuels, alternate energy resources are being explored as a national objective. Being inherently deficient in fossil fuels& in view of fast depleting natural gas reserves, Pakistan has to rely heavily on expensive fuel imports to support its thermal generation plans. But with the escalating cost of imported fuels & international concern on carbon emission, it has become ever more necessary to explore alternate sources of energy within the country to reduce dependence on imported fuel & ensure energy supply to maintain industrial & socio-economic growth.

As a part of its energy security plan, the Government of Pakistan lays greater emphasis on tapping the indigenously available coal, wind, hydro & solar energy resources to raise their share in energy generation to a significant level. Since the State of AJK is blessed with abundant hydropower potential in close proximity to major industrial & urban load centers, proposals & schemes for its development area in the national interest & need to be supported. Energy generation from indigenous hydropower resources would significantly contribute towards saving imports of fossils fuels for the same purpose.


To plan and to undertake development of identified hydro potential.


The outline of the Policy to promote the development of hydropower projects in AJK covers the following aspects.

  • Award of raw sites on first come first served basis to Interested Investors who establish their financial soundness to meet the equity component of investment.
  • Award of Solicited Sites on the basis of competitive bidding to Investors/interested Investors on reimbursement of feasibility study costs.
  • Leasing of State owned land on concessional rates required for project development to Investors/developers without provision for escalation of lease rates.
  • Support in acquisition/leasing/purchase of private owned land through revenue department.
  • Support in setting up regional receipt/Dispatch grids for optimal utilization of capacity.
  • Generous package for BOT implementation including 5 years grace period for extension of operation.
  • Generous tax/levies incentives to promote cottage industrial/agricultural units running on hydropower projects on the concept of captive generation.

The GoAJK shall extend all possible support & assistance to the prospective potential Investors/project developers, who face difficulties in framing their proposals or obtaining necessary consents from the departments concerned.