ISLAMABAD: Water and Power Ministry has reportedly sought Rs 15 billion from Finance Ministry against Tariff Differential Subsidy (TDS) to maintain power generation between 12000 MW-13000 MW in June 2013, well informed sources told Business Recorder.
The fresh demand for funds has been calculated after a meeting between former minister for Water and Power Dr Musadiq Malik, who is lobbying to remain in the same Ministry as Advisor, Minister designate for Water and Power Khawaja Muhammad Asif, presumptive Minister for Petroleum Shahid Khaqan Abbasi and former finance minister Shaukat Tarin, who is also the head of power reforms committee of PML-N. Tarin, who is the owner of a private bank, has been given the task to wipe-out inter circular debt hovering around Rs 450 billion by issuing T-Bills.
Tarin along with renowned banker Mian Mansha of Muslim Commercial Bank (MCB) are using their expertise to bring the country out of energy crisis which has hit all segments of society including industry and business. During the last four weeks Finance Ministry released Rs 21.5 billion in three instalments to the Ministry of Water and Power to enable Pakistan State Oil (PSO) to pay for fuel imports for supplying to public sector power Generation Companies (Gencos) and Independent Power Producers (IPPs).
Caretaker Prime Minister Mir Hazar Khan Khoso had approved an amount of Rs 22.5 billion to ease loadshedding in May 2013, but Finance Ministry released only Rs 21.5 billion in three instalments. The amount of TDS would touch Rs 365 billion during current fiscal year if the Finance Ministry released the requested amount in June 2013 against budgetary allocation of Rs 120 billion, said an official on condition of anonymity.
With the implementation of judicious power distribution formula across the country, the duration of loadshedding has reduced substantially in rural areas as burden of loadshedding is being shared equally with urban areas. According to official figures, power generation was 12,150 MW against total demand of 16,600 MW showing a shortfall of 4,450 MW. Unconfirmed reports suggest that the phenomenon of forced loadshedding still exists and an official has confided to this scribe that there was forced loadshedding of 1000 MW a couple of days ago.
The matter of balancing Pakistan's supply against demand for electricity has remained largely unresolved for decades. Pakistan faces a significant challenge in revamping its network responsible for the supply of electricity. Pakistan's electricity producers are now seeking parity in returns for both domestic and foreign investors which indicate it to be one of the key unresolved issues in overseeing a rise in electricity generation when the country faces growing shortages.
Early resolution of energy crisis is agenda number one of Nawaz Sharif's government which has commenced consultations with different power sector and financial sector experts aimed at presenting a viable solution to the crisis in three phases ie short-term, mid-term and long-term. Power sector experts say that the issue of power sector can be tackled in two years time if the government of the day is sincere in steering the country out of the crisis.
Comments
Comments are closed.