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BR Research

Power reforms

Published October 8, 2010 Updated October 8, 2010 12:00am

Energy savers do not seem to be on the priority list in Islamabad as a lot is at stake for power (read government) saving these days. But sooner or later, the government will have to decide on the fate of the 30 million energy saver bulbs that the ADB wants to be used all across Pakistan, in order to move on the track of the energy sector reform programme.
Reports have emerged in the local media that the ADB might pull out of the $980 million loan agreement aimed at the power sector reforms, if the government does not act promptly in entering the agreement with the French Development Agency (AFD), which is also a part of the consortium, immediately.
It has been nearly 18 months since the ADB proposed the CFL bulbs project to the government to combat the menace of loadshedding that still persists with all its vigour. Usual business in the power ministry, which unfortunately is slacking, has brought the situation to this point, where the government has to decide immediately if it wants to continue with the ADB, which also happens to be Pakistans largest partner in energy development.
Fortunately enough, Pakistan is most likely to continue its partnership with the Asian lender as the Prime Minister has already approved of the plan and it requires only formal cabinet approval. So there is nothing to worry, at least, in the energy savers case.
But worries remain for the future as the implementation stage of the reform plan will demand stern and instant action, something, which has been missing from the governments side. A recent case in point is the governments failure to comply with the ADBs requirements that convinced the ADB to shelve its technical assistance programme on energy reforms.
Pakistan can ill-afford a major financier pulling out at this juncture, as energy woes are turning from bad to worse. Surely, the government should make a realistic assessment and should not promise ambitious deadlines to eradicate load shedding. But at the very same time, the time to use we have no magic wand phrase is also fast going by.
The relevant ministry that now also runs the functions that Pepco used to run needs to realise that neither the IMF nor the ADB will be lenient forever; they will not keep granting grace periods to accommodate for the complacency, non-seriousness and technical incompetence of the ministry.
Pepco or no Pepco, independent boards or otherwise, it is high time that the real issue be addressed before it becomes too late for anyone to handle. The evil of all problems remains the lack of the all-important political will. Building dams, reducing power theft and improving billing collection and all ancillary works require a strong political will, which sadly is still absent.
"It is not the mega-watt shortage that Pakistan faces, it is the mega-will that we lack", shared a power sector expert citing incompetence and high political interference as other major issues in the industry. For sure, the government cannot sweep its inefficiencies under the carpet in the name of tariff rationalisation every time.

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