Government of Khyber Pakhtunkhwa (GoKP) has formulated an investment friendly Power Policy to attract private sector investment in the province. The Salient Features of the power policy are as under;

1.  Pakhtunkhwa Energy Development Organization (PEDO) can now issue LOI and tripartite LOS for project of any magnitude. 
2.   Permission for power generation companies to issue corporate registered bonds.
3.   Permission for foreign banks to underwrite the issue of shares and bonds by the private power companies to the extent allowed under the laws of Pakistan. 
4.   Permission to issue shares at discounted prices to enable venture capitalists to be provided higher rates of return proportionate to the risk. 
5.   Pakhtunkhwa Energy Development Organization (PEDO) will provide one window facility and technical help to the investors. 
6.   No provincial taxes will be levied on the sponsors of power plants based on hydel and other renewable sources.
7.   Customs duty at the rate of 5% on the import of plant and equipment not manufactured locally, including spares. 
8.   Hydro logical risk will be borne by Power Purchaser. 
9.   Concession period will be up to 30 Years. 
10. An attractive rate of return with repatriation of equity along with dividends is freely allowed, subject to the prescribed rules and regulations
11. Parties may raise local and foreign ?nance in accordance with regulations applicable to industry in general; GOP approval may be required in accordance with such regulations.