Senate panel makes proposal: PSDP allocations need to be diverted to energy projects

The Senate Standing Committee on Finance on Thursday suggested the government to divert entire allocations of Public Sector Development Programme (PSDP) towards energy related projects to resolve the growing problem of energy in the country, causing about Rs 500 billion losses to the economy.
The Senator from both the ruling coalition and opposition said that the energy crisis is the biggest problem of the country and maximum resources from other heads are required to the directed toward this sector to accelerate on-going projects of power generation. Senator Tahir Mashahdi suggested to the government to increase the allocation for power sector from existing Rs 184 billion in the PSDP to Rs 600 billion for the next fiscal year to resolve the load shedding problem.
The Finance Ministry opposed the proposal on grounds that it would be impossible to utilise such a huge amount in one year. Senators said that ongoing problem of load shedding has made it difficult for them to face the enraged voters. The committee agreed that the proposal of the senator to increase allocation for power sector would be taken up today (Friday) while reviewing PSDP for the next fiscal year.
Opposition leaders in the Senator, Ishaq Dr submitted recommendation on behalf of all the opposition parties and recommended that the allocation of Rs 22 billion for the Peoples Works Programme-II should be reduced to Rs 1 billion and the savings of Rs 21 billion be allocated for the Energy Sector in order to minimise the on going load shedding. The opposition parties also recommends that the allocation of Rs 5 billion for the Peoples Works Programme-I should be reduced to Rs 1 billion and the savings of Rs 4 billion should be allocated for the Energy Sector to minimise the ongoing load shedding.
The opposition recommends that the proposed increase in budget for the Presidency should be withdrawn and the same amount be allocated for the Higher Education, It proposed that perks and privileges for the former Presidents and Prime Ministers of Pakistan should be withdrawn. The opposition also recommends that the ongoing menace of circular debt may be brought to an end on urgent basis to deal with ongoing energy shortage.
The opposition leaders also recommended that federal government should provincialise all DISCOs to rationalise the energy cost but the proposal was opposed by the Senator Haji Adeel of Awami National Party (ANP) who stated that his party would accept the proposal on condition if the government also provincialise the power generation by the provinces along with distribution companies. Dar recommended that a single "Energy Ministry" should be created by merging different Federal Ministries dealing with energy subject, to take fast track actions on on-going issues relating to energy. The federal government must take immediate measures to stop all grey traffic in the country to ensure the outstanding receipt of Rs 75 billion from M/s Etisalat on account of privatisation of PTCL. The income on account of Petroleum levy estimated for 2012-13 at Rs 120 billion should be reduced to Rs 70 billion to provide some relief to the consumers due to unjustified increase in petroleum products.
The Senate recommends to the National Assembly that the Government may promote agriculture reforms to incentivise small farmers and rural women, encourage co-operative farming and distribute state land among landless peasants. The government has been asked to promote micro financing and venture financing as well as to set up small and medium enterprises and patronise domestic and agro based industry in the country.