Pakistan Tehreek-e-Insaf (PTI) on Sunday unveiled its Energy Vision Policy focused on development of electricity based on indigenous resources and replacement of furnace oil fired plants with imported coal.
PTI leader and former minister for Industries and Production, Jahangir Khan Tareen, presented PTI's energy policy titled "From Crisis to Solutions", which envisages to resolve energy crisis with diligent planning, effective policy and efficient management for a self reliant and economically viable Pakistan.
PTI Chairman Imran Khan and senior leader Makhdoom Javed Hashmi were also present during the presentation, which was attended by diplomats of different foreign missions.
"We will come in the government through people's power and when Prime Minister Imran Khan and his cabinet will take oath, a well developed vision with short term, medium term and long term energy policy will be presented to them," said Jahangir Tareen. He identified five key reasons behind the energy crisis in Pakistan: (i) poor governance, planning and implementation;(ii) circular debt/ financial sustainability of sector;(iii) wrong fuel mix with two-thirds of power from imported furnace oil and gas;(iv) depleting indigenous gas supply; and (v) and financing future energy investment would require $6 billion annually for power sector alone.
He said that only a government committed to a radical change could transform the status quo of the vision and implementation paralysis. The challenge, which is Herculean, is surmountable if tackled on a war footing, he opined.
Tareen said the energy plan will be presented before the Parliament and private sector will be taken on board to implement it.
The PTI, besides presetting solutions to the country's energy crisis has presented its government first 100 days' plan.
'Big Bang' governance reform will be launched in the first 100 days.
a) Single professional Ministry of Energy and single empowered energy regulator.
b) Liberation of pubic sector enterprises (Gencos, Discos, OGDC etc.) from government interference.
c) Appointment of independent boards with real powers, including sections of CEOs.
d) Opening up of power sector generation to small and medium investors.
e) Use of renewable, off grid solutions like solar, biomass, micro hydel for rural electrification.
To resolve circular debt, which has choked the whole energy sector, PTI has proposed overall reduction in transmission and distribution loss from 20 percent to 10 percent in addition to increase in collections to 95 percent from 88 percent.
Conversion of 4500 MW plus power being generated on furnace oil plants to much cheaper imported coal to reduce generation cost is also part of solution as according Jahangir Khan Tareen, wrong fuel mix is one of the main factors behind gigantic inter-circular debt.
"Implementation of these measures will save Rs475 billion annually," he added.
We have to double country's generation from 20,000 MW to 40,000 MW to meet the requirements for which $ 6 billion investment will be required per annum," he continued.
Pakistan has to change its fuel mix massively to bring down the price of electricity, which is not in the reach of poor segments of the society. "If the current trend in fuel mix continues, furnace oil bill will be $12 billion," he warned. According to him, power crisis will be far worse in the coming months and the shortfall will be 5700 MW.
To correct the wrong fuel mix, PTI has the following suggestions; (i) Thar coal to be prioritised as a game changer;(ii) coal to go from 0.1 percent to 20 percent of power fuel mix within five years through conversion of furnace oil plants to imported coal and bringing Thar/imported coal IPPs online while ensuring environmental sustainability; and (iii) addition of 4,000 MW hydel power within five years by fast tracking the stalled pipeline projects and CASA hydel-based import (Central Asian).
To resolve the gas crisis, PTI has proposed to add 2,000 mmcfd gas from domestic resources, within five years by facilitating and incentivising existing and new investors. Revitalisation of public sector's institutions and spending of specific share of gas levy on local Tehsil/District and import of 1500 mmcfd gas as interim measure are also part of the energy vision.
Following measures were announced for future energy investments: (i) resolve circular debt and deepen domestic banking market;(ii) set up Infrastructure Development and Finance Institutions (IDFI) to catalyse energy investments from overseas Pakistanis domestic and international investors, sovereign funds etc;(iii) develop long term bond market including Islamic bonds and ;(iv) charge losses/subsidies to budget instead of issuing TFCs and mortgage future generations.
Tareen further proposed to delegate decision making authority from politicians to professionals in the energy sector and creation of an enabling environment to attract the best of the best manpower from Pakistan and all over the world.
He stressed on formulation of a transparent mechanism in which a Prime Minister should not be allowed to restore gas of his friends' fertiliser factory and the other factory gets gas by paying bribe. A question and answer session was also held wherein Imran Khan and Jahangir Khan Tareen answered questions.