MUHAMMAD SALEEM
LAHORE: Leader of the Opposition in the Senate and veteran PML-N leader Senator Ishaq Dar has termed the energy crisis as the biggest challenge confronting the country and called for simultaneously launching short-term and long-term power projects to overcome the problem.
Addressing the private sector's 'Energy Roundtable' arranged by the Lahore Chamber of Commerce and Industry (LCCI) here on Saturday, Dar said that the energy shortage would ultimately lead to food shortages.
He said that lack of political will had aggravated the energy situation.
As much as 5,000 megawatts of additional energy could be generated if the authorities concerned gave a little attention to overcoming power shortages. "A permanent solution to the country's energy crisis is direly needed," he said
Stressing the need for making rebuilding and modernising national economy the top priority, he said that without energy, all economic plans would remain unfulfilled.
He said the PML-N was working seriously to develop comprehensive short-term and medium-term strategies to ensure adequate supply of electricity and gas at affordable prices to average citizen and to agricultural and industrial consumers.
The PML-N, he said, had incorporated an energy solution in the party's manifesto for the next elections, he said. He said that concrete steps were needed to reduce the circular debt, which was hampering the country's economic development.
LCCI President Irfan Qaiser Sheikh, Chairman of the Independent Power Producer Advisory Council Abdullah Yousaf, former Wapda chairman Tariq Hameed, former finance minister Dr Salman Shah, Suleman Najeeb Khan, Munawar Baseer and Prof Dr Farid Malik gave their presentations on the energy situation and its solutions.
LCCI senior vice-president Kashif Younis Mehr, vice-president Saeeda Nazar, former LCCI presidents Mian Mohammad Ashraf, Mian Anjum Nisar and Shahid Hassan Sheikh, former senior vice-president Sheikh Mohammad Arshad and former Executive Committee Member Khalid Rafiq were among the panelists.
Ishaq Dar said that present and past planning teams had committed mistakes by ignoring the vital energy sector but, instead of pondering on past follies, "we should focus on energy generation".
According to him, as many as 500 textile units had closed down because of energy shortages.
Former Finance Minister Dr Salman Shah said that Kalabagh dam was the only short-term option for overcoming the energy crisis and reviving the country's stagnant economy. He said Kalabagh dam was a feasible project and it could be constructed in just four years to produce 4,000MW of electricity at a rate of just Rs1.5 per unit.
He said that deregulating the power sector was vital for resolving the energy issue. In this regard, he quoted the example of the telecom sector, which was providing a large chunk of revenue to the government today. He said that single-buyer model should be changed, as it had failed to ensure provision of cheaper electricity to consumers.
LCCI President Irfan Qaiser Sheikh said that energy crisis was disrupting economic and social activities throughout the country, particularly in Punjab. The situation is causing business closure and unemployment. Incomes, profitability and competitiveness were eroding and energy insecurity was growing, he said, adding, "The irony is that all this is happening in a potentially energy-rich country."
The LCCI President said the country is facing fundamental policy, planning, management, investment and regulatory failures in energy sector development and these failures have undermined economic and social wellbeing. He said that the government should come up with a comprehensive and viable energy policy based on national interests.
Former Wapda Chairman Tariq Hameed said that small projects of up to 500MW would not help resolve the current power crisis. He emphasised on the need for initiating projects that may give a quantum jump to power generation. This objective, he said, could be achieved by exploiting the hydro electric potential of the country.
Detailed studies, he said, had already been prepared by Wapda, including Kalabagh dam (3,600MW), Bhasha dam (4,600MW), Dasu (3,000MW) Bonji (7,000MW).
In order to ensure sustained power supplies in future, the government should at least start two major hydro electric projects immediately, he said.
He said that electricity requirement in the country is increasing at 8% per annum while during the past four years "we have not been able to even plug the existing shortages". The supply and demand gap was widening with every passing year, he said.
Tariq further said: "Alhough energy crisis seems to be the main issue, water shortage will be a more contentious issue among the provinces in the near future." He said that the cuurent per capita water availability in the country today was 1,000 cubic metres. According to him, this level would start declining "from now onwards which will place the country among water starved nations".
Chairman of the Independent Power Producer Advisory Council Abdullah Yousaf expressed concern over the ever-increasing circular debt, which was touching Rs365 billion and "is increasing at the rate of Rsone billion every day". He said Pepco's outstanding dues were Rs350 billion.
He pointed out that circular debt was a governance issue. An amount of Rs150 billion was outstanding against the public sector which could be recovered through NFC Award while dues against private sector could be recovered by disconnecting the power supply.
He further said that 2,500MW could be brought back into the system immediately by paying IPP dues.
Suleman Najeeb Khan said that Pakistan "is abdicating its water rights to India", adding that bureaucrats were wrongly interpreting the Indus Water Treaty.
He cited the example of Neelum-Jhelum Project which gave Pakistan full rights over its water once it had expressed its intention to build the project in 1990.
Munawar Baseer said that energy situation could be tackled by giving full responsibility and charge to competent and honest professionals, as politicians "are driven by their own self-fulfilling motives and agendas".