Federal Minister for Power Omer Ayub Khan on Monday informed the Senate that circular debt had increased during 2017-18 by Rs 450 billion which would be brought down to zero by December 31, 2020. He said that it all became possible due to ongoing reforms in the power sector, as strict measures are being taken to remove impediments to power transmission, curb power theft and cope with the issue of circular debt. He was winding up debate on recent increase in petroleum products.
He said that in five months, the government received Rs 61 billion as revenue in power sector. He said efforts are afoot to increase the share of renewable energy in the energy mix to thirty percent by 2030. At present, he said there are a total of 8,780 feeders in the country, of which 80 percent are exempted form load shedding, which was made possible by a crackdown against kunda (illegal hook) mafia. He claimed that no load shedding is done in any parts of the country during Sehr and Iftar.
"We have also reduced PDL [petroleum development levy] from Rs 300 billion to Rs 200 billion. We need to pay attention to conservation, as our total energy demand which also included petroleum and other products, is 84 million tonnes equivalent, of which 75 percent is wasted, which needs to be plucked in," he added.
Despite severe criticism from opposition, he said the government did not pass on the actual impact of the international increase in the prices of petroleum products to the people and provided relief of Rs 58 billion.
The opposition lawmakers came down hard on the government for the recent increase in POL products' prices, saying this has resulted in price hike of edible items.
Taking part in the debate, former chairman Senate Raza Rabbani regretted over the statement made by International Monetary Fund (IMF) officials that the agreement will be endorsed by its executive board.
He said, "The IMF is not ready to finalise the agreement without approval of its executive board, but our adviser to the Prime Minister [Hafeez Sheikh] announced it without taking the Council of Common Interests (CCI), the Cabinet and Parliament into confidence."
"The IMF says that this agreement will not go ahead unless prior actionable things are done which included Rs 700 billion additional taxes, 200 basis points increase in interest rate, and the most dangerous thing which is that there will be a tsunami of crisis - a further 20-30 percent rupee depreciation and more increase in oil, gas and electricity prices," he said.
In the same breath, Rabbani continued, "It is a hybrid war which we should be careful about, as the US is using institutions like the IMF for its political leverages." He also said that Egypt model of governance and economy is being implemented in the country, which, he categorically said, is in no way acceptable.
Kabir Shahi of National Party also criticised the government's economic policies.
Mohsin Aziz of PTI defended his party government's decision to increase petroleum prices, saying the prices are still under control compared to past governments of PPP and PML-N, adding if prices are increasing, it is because of past regimes.
He said that Pakistan had gone to IMF for 22 times in the past and the then PML-N governments availed bailout packages for as many as 12 times.
He said that economy of Egypt improved due to IMF packages, and criticising the new State Bank Governor Reza Baqir is not acceptable as past regimes also hired people working for IMF as governors of the central bank on numerous occasions.
"If you are so concerned about the woes of poor people, let us move a resolution and pledge our salaries for building a hospital for the poor in Islamabad," he added.
Senator Mushtaq of JI said the IMF bailout package is rather a "sell-out Pakistan package."
Senator Pervez Rashid said that all past governments announced Ramazan packages ahead of the holy month, but this government gifted 'petrol bomb'. About removal of Asad Umar as finance minister, he said PM Imran Khan used to call him his right hand and he cut down his own right hand and opted to implant a 'rented arm' in the shape of Hafeez Sheikh.
Usman Kakar of PkMAP said that PTI government has struck a deal with 'international and local establishments' to prolong its rule. He said that work on 80 percent development projects for Balochistan had been stopped.
"The only project which is in full swing is marriages of Pakistan women with the Chinese...no country of the world is into this business with Chinese except us which is quite shameful," he added.
Senator Nauman Wazir Khattak of PTI said that the agreement with the IMF is a staff-level agreement, and both parties will go to their respective authorities. He said that before every agreement there are prior actionable things and then first tranche is released, and it is nothing new.
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