GETTING THE MOST OUT OF OUR ENERGY DIALOGUE WITH PAKISTAN

UNCLAS SECTION 01 OF 02 ISLAMABAD 000405 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: ECON EAID ENRG PREL PK SUBJECT: GETTING THE MOST OUT OF OUR ENERGY DIALOGUE WITH PAKISTAN ¶1. (SBU) Summary and Action Request: Ministry of Water and Power Additional Secretary Zarar Aslam suggested rescheduling the U.S.-Pakistan Energy Dialogue during the week of March 15. He requested the USG propose dates via letter to which Aslam would then coordinate a GOP response. Although Aslam expressed satisfaction with the broad dialogue agenda as previously agreed, Post suggests taking advantage of the delay to target our discussion more precisely and draw in both the World Bank and U.S. business. Post requests Washington views on GOP dates and Post's ideas for structure. End Summary and Action Request. -------------- GOP Fine with the Status Quo -------------- ¶2. (SBU) In a February 11 conversation with EconOff, GOP Energy Dialogue POC Ministry of Water and Power Additional Secretary Zarar Aslam suggested rescheduling the Energy Dialogue during the week of March 15. Aslam professed to be unaware of earlier communication from the Pakistani Embassy in Washington suggesting March 5-6, adding that elections in Pakistan March 4 would likely preclude GOP participation on those days. Aslam confirmed that the GOP was comfortable with the agenda as previously negotiated. He also confirmed that the original list of participants would attend. If the U.S. side is agreeable to the proposed dates, Aslam requested that the U.S. send a letter offering the dates, to which he would then coordinate the GOP response. -------------- Getting the Most Out of Our Dialogue -------------- ¶3. (SBU) In considering the way forward on the energy dialogue, Post's priority is that it be as productive as possible, even if that means holding the event at a somewhat later date to ensure maximum participation at an appropriately high level in Washington. We should, however, lock in dates soon. ¶4. (SBU) Despite Pakistani satisfaction with the agenda as it currently stands, Post believes some refinement may be advisable. While the current agenda is an excellent tour d'horizon of energy issues, our interaction with the GOP might benefit from a more targeted discussion of a limited number of key issues. In addition, we also suggest expanding the time allotted to discussing energy efficiency and for interaction with the business community on specific items of interest. By rotating the primary subject of the dialogue, the dialogue itself remains fresh and targeted on whatever area of the energy basket is most germane at a given time. Energy efficiency is relevant to all of the possible subjects and could act as a unifying thread to the overall dialogue. Lastly, an ongoing examination of commercial issues, including the investment climate, would allow us to communicate the specific concerns of the private sector better. -------------- Bringing in Business? -------------- ¶5. (SBU) Post sees value in adding a session that includes private sector representatives. They could receive a brief overview of the areas discussed and then have an opportunity to interact directly with GOP interlocutors on specific projects - setting the stage for possible future, direct discussions. Post also recommends inviting in the World Bank for the session on Thar Coal. This could provide follow up to the World Bank hosted energy roundtable in Washington last July at the time of Prime Minister Gilani's visit. -------------- Notional Agenda -------------- ¶6. (SBU) In line with our suggested approach, Post proposes to focus the next energy dialogue on coal and electricity. Our rough, notional agenda includes expanded time for presentations and discussion. ISLAMABAD 00000405 002 OF 002 Day I -------------- Private Meeting - Heads of Delegation (15 mins) Welcoming Remarks (20 mins) Energy Sector Overview (45 mins) Coal and Electric Power Policy - Part I (1 hour 45 mins) Lunch Coal and Electric Power - Part II (45 mins) Thar Coal - Plans and Possibilities (45 mins) Overview for U.S. Business (1 hour) Day II -------------- Energy Efficiency (1 hour 30 mins) Next Steps (30 mins) Closing Remarks (15 mins) FEIERSTEIN