The federal government is offering to potential investors around $60 billion market of its renewable energy generation, transmission and distribution system along with petroleum sub-sector offering huge oil and gas exploration opportunities of around 40 new sites for which auction will be conducted next month.
This was stated by Federal Minister for Power and Petroleum, Omar Ayub Khan in a meeting with German Ambassador Bernhard Schlangheck who called on him at his office on Friday. Nadeem Babar, Special Assistant to the Prime Minister on Petroleum, was also present.
Regarding exploration of new oil and gas reservoirs, the German ambassador was apprised that due to absence of clear globally acceptable policy for exploration, there were a few explorations as compared to the potential that Pakistan had. Now after the policy has been revamped, the government is ready to auction around 35 offshore and 10 onshore sites for exploration starting from December 2019.
While apprising the German ambassador of the new Renewable Energy Policy, the federal minister said that for the first time the provinces have been given a major leading role in both: decision making regarding new renewable energy projects as well as their implementation. A steering committee having due representation of all the provinces has been envisaged for this purpose in the AEDB, he added. He said the government has formulated a 25-year generation plan alongside transmission plan for commissioning new electricity projects in the country.
Omar Ayub Khan briefed the German ambassador regarding the huge potential of per capita consumption of electricity in Pakistan that is currently around 500KW lower than China which is 2500Kw per capita. This means that electricity consumption will further increase in Pakistan with the adoption of business friendly policies by the present government. He said the government has formulated Circular Debt Capping Plan, adding the circular debt which was swelling by Rs 39 billion per month during the previous government, has been successfully brought down to little more than Rs 10 billion per month. Its growth will be arrested by the end of next year, he added.
The federal minister also threw light on the steps taken by the present government towards bringing efficiency in the power sector. He said that due to extensive anti-theft campaign, recovery drives, actions against own employees, and such other measures, 80% feeders across the country are now receiving uninterrupted power supply while work on rest of 20% is fast and on track. Moreover, considerable investments are also made in new technology including AMI meters and aerial bundled cables installation in the DISCOs to enhance their efficiency and reduce losses.
The German ambassador appreciated the government's endeavors in the energy sector.