Risky Winds: Investing in Wind Energy Projects in Pakistan

Abstract

Investment in renewable energy sectors in many developing countries has grown significantly in the last decade. Developing countries now seek to attract investment in the renewable energy sector. Foreign investment in developing countries hinges on factors such as security of investment, entry barriers, cost of doing business, repatriation of profits, dispute resolution, etc. This is where the role of the government and policy-makers becomes critical. Unless a sector-specific policy is adopted that is not only coherent and adaptable but also extends the right incentives, foreign investors will remain reluctant to invest in the renewable energy sector even if a huge investment potential exists. This article highlights Pakistan as a case study to examine law and policy issues pertaining to investment and transaction costs associated with investing in a developing country that possesses significant wind energy potential.

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Notes on contributors

Umair Ghori

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Umair Ghori is Senior Teaching Fellow, Faculty of Law, Bond University in Robina, Queensland, and Fellow, Tim Fischer Centre for Global Trade and Finance, Bond University. The author would like to thank David Strangio for his able research assistance. Responsibility for all errors and omissions rests solely with the author. The author can be contacted by email at [email protected].