Minister admits enormity of power sector challenges

MUSHTAQ GHUMMAN

ISLAMABAD: Minister for Water and Power Khwaja Asif on Tues-day acknowledged his government’s failure in dealing with massive power sector issues including power theft, collections and circular debt. He, however, vowed to deduct outstanding public sector power sector dues (including dues from provincial governments) through Federal Adjuster despite a strong opposition.

He was taking to journalists on the occasion of a meeting of Pakistan-China Working Group at a local hotel with a view to wooing Chinese companies to invest in the power sector - a top priority of the incumbent government.

Khwaja Asif announced that electricity connections of all defaulters will be disconnected. “Provincial governments and departments are not paying bills and government wants to deduct these bills at source through Federal Adjustor despite provinces’ opposition,” he added.

According to him, this policy is line with the commitment made by the Government of Pakistan (GoP) to the International Monetary Fund (IMF) that it is implementing revenue-based load shedding across the country.

Khawja Asif acknowledged that the government was unable to eliminate power load shedding, adding that “65 years of power theft addiction” could not be eliminated in one year.

He added that it would take a long time to end line losses and power theft and admitted that it was not possible to resolve circular debt in energy sector.

The government would initiate mega projects of 7000 MW power during ongoing year with the assistance of China, he said and added that the public would start getting power supply from these new projects in 2017. More energy supply would bring economic prosperity by ending power outages, he stated.

Addressing Energy Planning Working Group, he stated that government had been able to enhance power generation to bridge demand-supply gap for energy security in the country.

He maintained that government had given top priority to investment in power sector and was focusing on wind, solar and coal-based power projects for a better energy mix.

He said Chinese investors would be invited to install coal-based power plants in Pakistan and all possible facilities would be provided to Chinese companies. “For the first time, the government will give a facility of transmission lines to power sector and has planned for transmission and designing of power plants,” he said adding that government measures would lead to a comfort-level among the Chinese investors.

According to him, Pakistan has a huge potential for Chinese investment in energy sector and the government will overcome energy crisis with the cooperation of China.

Minister for Planning and Development and Reforms Ahsan Iqbal said that the government was committed to ushering in an economic revolution through the Pak-China Economic Corridor. “Pakistan and China have good relations and China will emerge as leading economic partner of Pakistan by implementing economic corridor,” Iqbal said, adding that energy projects were a must for economic corridor.

According to him, the government will inaugurate energy projects that are at an advanced stage during the visit of the Chinese President, Xi Jinping.

Iqbal stated that as many as three billion people would benefit from the Pakistan-China Economic Corridor.

China Vice Administrator National Energy Zhang Yuqing said that National Energy Administration would play a lead role in implementing energy projects and the Pak-China Economic Corridor. “We are committed to working in Pakistan and will soon initiate energy projects,” he said, adding that special energy working group had been formed in this regard. He said that China would invest $ 6 billion to implement the proposed Pak-China Economic Corridor.

“China will hand over a draft paper of planning to Pakistan in November,” he said, adding that Chinese concerned authority would accord approval in December. He also added that China would invest in 21960 MW power projects in Pakistan.

Load shedding will become a past nightmare, he said and added that 6000 to 7000MW electricity projects would be initiated this year and would be completed by 2017.