Pakistan Muslim League-Nawaz (PML-N) Monday presented long-term and short-term remedies to overcome the energy crisis underscoring the need of expediting work on gas pipeline projects signed with the neighbouring countries along with addressing the issue of circular debt and also called for national consensus on construction of new dams.
The proposals came here at Energy Conference organised by the party, which was participated by a number of energy experts, parliamentarians, representatives of industries, researchers, scholars, educationists, businessmen, engineers and professionals. Declaring the energy crisis as the biggest challenge to the new government after elections, the party blamed the successive regimes including the incumbent PPP government for aggravating the energy issue faced by the country at the moment.
In draft manifesto of PML-N, 2012 "Resolving the Energy Crisis" comprising short term and long term policies to overcome the energy crisis, the party recommended that work on the proposed gas pipeline projects from the neighbouring countries should be expedited so as to overcome the energy shortage besides evolving national consensus on construction of dams.
However, PML-N's leader from Sindh Ghaus Ali Shah opposed construction of the controversial Kalabagh Dam (KBD) terming it dangerous for the federation when former chairman Wapda Shams-ul-Mulk strongly recommended construction of the KBD, saying that the future generation would hold them responsible for the criminal negligence if the reservoir was not constructed.
Upon this, PML-N senior vice president Sartaj Aziz said that it was need of the hour to evolve national consensus on construction of dams. The conference suggested that loadshedding could come to an end by resolving the issue of circular debt. The basic purpose of this conference was to address the energy crisis and then to develop sustainable policies to counter the challenge.
On behalf of PML-N chief Nawaz Sharif, chairman PML-N Raja Zafar-ul-Haq presented opening remarks, saying that the prolonged loadshedding has adversely impacted all sectors of the economy; whether industrial production, agricultural sector, particularly Punjab has suffered enormous loss due to the inadequate supply of gas and electricity.
He said that thousands of workers have been laid off in the face of high fuel prices, and the country's exports have been seriously affected. The sad part of it is that it all could have been avoided with better planning and timely actions, he added.
He pointed out that 185 billion ton identified coal reserves in Sindh alone is sufficient to generate 100,000MW for more than 300 years. About 50 million tons of coal per year would feed 9000-10,000MW power plants, he said. Similarly, in hydro-power sector, he said that the country has huge water resources and identified dam sites with a potential of more than 54,000MW, of which we are using less than 15 percent.
He said that potential from wind is estimated at 40,000MW while solar energy is also very high with solar radiation of 2MWh per square meter and 3000 hours of sunshine per year which is among the highest in the world. Pakistan has immense untapped hydro-carbon potential-estimated at 27 billion barrels of oil and 280 trillion cubic feet of natural gas, he pointed out. "We are also one of the nuclear power states, which has the capability to build nuclear power stations", he added.
Haq told the participants on behalf of the PML chief the roots of the present energy crisis could be traced directly from the 1994 power policy for independent power producers (IPPs) when very generous terms of 6.5 US cents per unit plus cost of oil, were offered to private investors to set up power plants based on imported furnace oil.
This policy, under which several thermal plants with total capacity of 7000MW were set up, drastically changed the hydro-thermal mix from 70:30 in the early 1990s to 30:70 at present, and increased the country's dependence on imported fuel for its energy needs with serious economic and environmental consequences, he said.
As the price of oil increased from $10-15 a barrel in 1994 to over $140 a barrel in 2008, he said that the foreign exchange cost of petroleum imports went up 12 times from Rs 42 billion ($1 billion) to Rs 724 billions ($12 billions). It also raised the cost of generating one unit of electricity to over Rs 10 per kwH (compared to Rs 1 per kwH from hydro electricity) pushing it beyond the reach of the ordinary consumer.
In Pakistan, he pointed out that proportion of power generated from fuel is one of the highest, 68 percent, in Pakistan compared to 26 percent world average. Other countries are generating highest proportion of power from coal; India 68.6 percent, China 79.1 percent, and the US 48.8 percent; compared to Pakistan of only 0.1 percent, he added.
In his address, PML-N deputy secretary general Ahsan Iqbal pointed out that the overall power shortage figures which is around 5000MW and for Punjab, the power shortage is over 2600MW. He further said that the available power generation capacity was less than 15000MW in the country. He further said that natural gas shortage was around 1 billion cubic feet per day. According to 2009-2010 Economic Survey of Pakistan, he said that it was noted that a loss of 2-3 percent GDP occurred owing to energy shortage and now this figure has been raised due to the current scenario.
PML-N senator Ishaq Dar also shared his views with the participants and according to him, lack of political will to deal with the energy crisis was the main source of concern. He stressed the need for national plan of action by involving all the stakeholders.