ISLAMABAD: Ministry of Finance and the Ministry of Petroleum would provide Rs 45 billion and 150 mmcfd gas to power sector to add 2,700 MW to the system, which would help reduce power outages by three hours in coming days. This was announced by Advisor to Prime Minister on Finance, Dr Shahid Amjad Chaudhry, Minister for Petroleum Sohail Wajahat Siddiqui and Minister for Water and Power Musadik Malik at a joint media briefing, here on Friday.
The Advisor said that Rs 10 billion would be released immediately to the power sector and Rs 35 billion in the next two weeks as short-term measures to reduce loadshedding. He said the Petroleum Ministry has agreed to provide 150 mmcfd gas to power plants, which would add 1,500 MW to the system immediately and another 1,200 MW in next 15 days.
Amjad said these recommendations were formulated by a committee constituted by Prime Minister Mir Hazar Khoso and comprising ministers of finance, water and power and petroleum. The recommendations were approved by the Prime Minister on Thursday.
He said despite these measures it could not be guaranteed that there would be no loadshedding because of over 4,000 MW gap between generation (9,200 MW) and demand (13,500 MW). Minister for Water and Power said these measures would help reduce by three to three and a half hours loadshedding. He said there is 4,000 tons capacity in the IPPs which require Rs 10 billion monthly to generate 1,100 MW electricity and provision of 150 mmcfd gas by the Ministry of Petroleum would add 800 MW. He said some hydel power generation is also likely to be added to the system following availability of water in a few days.
Replying to a question, Secretary Finance Dr Waqar Masood said that power subsidy would not exceed revised target of subsidy on electricity and all this amount was being provided on account of tariff differential which was underestimated in the budget for the outgoing fiscal year. Dr Amjad said the available option with the caretaker government was either to pass on full generation cost to consumers by raising electricity tariff or providing subsidy. He said there was an agreement in the caretaker government that decision to increase tariff is a political decision, which must be left on the next elected government.
Minister for Water and Power said caretaker government would leave recommendations for the next government to deal with the problem of circular debt and power generation. He said there is need for fixing the system because it is not sustainable to generate per unit electricity at Rs 14 and sell at Rs 9 per unit. Minister for Petroleum said 150 mmcfd gas would be provided to power sector through adjustment and inefficient captive power plants would face penalty.