LAHORE: Federal Finance Minister Dr. Hafeez Sheikh on Monday stressed the need for taking tough but vital decisions as well as joint efforts to put an end to the prevailing energy crisis in the country.
In his concluding remarks at the National Energy Conference, he pointed out that basic problem in the energy sector was change in the input mix, citing, the furnace oil component in the power generation was only 14 percent in 1985, while today it has shot up to 41 percent and since the oil has to be imported and its prices are high which also effects the power tariff.
Dr. Hafeez said that many participants had termed the Circular Debt as major hurdle in streamlining the affairs of the energy sector and called upon the federal government or the prime minister to address this issue, but the real fact is that CD of about Rs 350 billion can be brough to zero provided the federal and provincial governments' institutions and the private consumers pay their dues which is also hovering around Rs 350 billion, to the DISCOs (distribution companies) which would then be able to push this debt to zero.
"It is a totally wrong perception that federal government is responsible to eliminate the circular debt or it is doing nothing to resolve this issue," he maintained.
The Finance Minister mentioned that federal government had already put a hefty amount of Rs 1000 billion during last four years, adding, it was our collective responsibility to overcome the debt.
While, the gas issue involves five constituencies including the domestic consumers, the CNG sector and when the government suspends their gas, they resort to street protest and become a constant harrassment for the government.
While, the fertilizer industry demands its total share even the government has to import the gas on higher prices but the consumer demand the facility on cheap rates.
The government has imported 12 tonnes of fertilizer and sold it to the farmers at half of its actual price and the federal government bore the subsidy amount on difference of tariff.
He stressed the need for giving an end to the trend of subsidy or high-priced commodities/facilities at cheaper rates, adding, "We have take tough but wise decision in this time where rhetoric should match the realty."
Dr. Hafeez Sheikh said, "We need to also have a transparent system of load management," asserting, the easy way of power generation is to save energy by altering our living behaviour.
Federal Minister for Water and Power, Syed Naveed Qamar was of the view that collective wisdom and joint efforts were the only way to get rid of energy crisis.
The present elected government had taken comprehansive measures to enhance generation to narrow down the electricity demand and supply gap, he added.
"We have managed to bring down the technical losses from 21 percent to 18 percent, while effective steps are being taken to generate an additional 800MW by improving the existing power system with the assistance of Asian Development Bank; 450MW through rehabilitation of Generation Companies and 1000MW through renewable energy resources- solar, wind etc. While, the Electricity Act would be sent to Council of Common Interest (CCI) for approval and it would help stop the power theft and line losses.
He said, the outdate power engines, deminishing gas supply, energy inefficiency and bills recovery crunch was the major factor that needed to be addressed to overcome crisis and eliminate the circular debt.
Federal Minister for Petroleum and Natural Resources, Dr. Asim Hussain called for preparing a roadmap of long, medium and short term energy projects to cater to the needs of the consumers, and all stakeholders must be taken on board to grasp the factor fueling the energy crisis.