Pakistan is expected to offer tax incentives, including an exemption from income taxes, for new power projects that use indigenous fuels. The country needs another 5,529 megawatts in additional generating capacity by 2010 to meet expected demand. Mirza Hamid Hasan, an official in the Water and Power Ministry, said October 24 that both the income tax exemption and a reduced 5% customs duty on imported machinery and equipment that is not produced locally, will be part of a package of incentives the government plans to offer to induce private developers to build new power plants.