Energy crisis: Minister urges energy, petroleum ministries to utilise framework

ISLAMABAD: Minister for Planning, Development, and Special Initiatives Ahsan Iqbal urged the Ministries of Energy and Petroleum to utilise the framework to overcome the energy crisis and to explore solutions and future mapping of resources for a sustainable energy mix.

The minister expressed these views while addressing at the “National Workshop on Integrated Energy Plan” organised by the Ministry of Planning, Development and Special Initiatives on Tuesday.

He said that there is a need to address the challenges faced by the common man, particularly, the high electricity tariffs, by utilising the integrated energy model.

He informed that the integrated energy model was developed to organise and optimise all energy resources to identify an affordable energy mix that can efficiently meet local energy requirements. He added that the unit had developed a leading framework, organised workshops and trained various ministries.

He suggested that a dynamic pricing formula is needed to switch from electricity to gas during the winter season, utilising excess electricity to reduce pressure on gas supplies. This, he explained, would also help resolve capacity payment issues and payments to idle powerhouses.

The minister pointed out that the imbalance between energy demand and supply was another issue causing price fluctuations and capacity payments. He noted that electricity demand rises to 30,000 MW in the peak summer season and drops to 12,000 MW in winter.

He said that when the Pakistan Muslim League resumed power in 2013, the country was facing terrorism, severe energy crisis and economic instability. The government decided to initiate energy sector projects under the China-Pakistan Economic Corridor (CPEC) by utilising local resources.

He said that under CPEC, the first energy generation projects in collaboration with the Sindh government were started in Thar, producing affordable energy. He added that other projects, including hydel, nuclear, wind, and renewable energy projects, were also initiated to diversify the energy sector and reduce reliance on any single source.

He said that in 2018, the economy was progressing, the energy crisis was resolved, and terrorism was eliminated from the country. However, he lamented that the government then fell into incompetent hands, which negotiated with the IMF under tough conditions and later broke the agreements.

He noted that the current government, in 2021, made difficult and unpopular decisions, sacrificing its vote bank to save the country from default. He added that due to 16 months of hard work, especially over the last eight months, the economy was heading in the right direction, with inflation reduced to a single-digit nine percent from 35 percent.

He highlighted that the stock market was performing well, reaching a record level, and that two renowned credit rating agencies had upgraded Pakistan’s economic rating.

The minister emphasised that stability and continuity are prerequisites for maintaining sustainability and progress, which are essential for putting the economy on a fast track toward economic development and social prosperity. He also praised the efforts of the workshop organisers, stating that it would help identify a reliable and affordable energy mix to eliminate the costly energy mix.

Copyright Business Recorder, 2024