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Published 28 Nov, 2008 12:00am

Demand for ban on privatisation of oil and gas fields

ISLAMABAD, Nov 27: Speakers here on Thursday blasted the government’s energy policies, demanding an immediate ban on the privatisation of strategic assets including oil and gas fields.

They were speaking at a seminar on ‘How to overcome energy crisis: policy Recommendations’, organised by the Sungi Development Foundation. The speakers included energy experts, former bureaucrats and civil society representatives

They called for making the process of agreements with the Independent Power Producers (IPPs), including tariffs, more transparent. All the agreements made with the petroleum exploration companies should be made public forthwith in order to ensure public right to information, they added.

The speakers also demanded that the information regarding ‘production bonus’ in the name of the President of Pakistan for last 25 years by the oil and gas companies should also be made public.

Emphasising the need to follow a pro-peace and pro-people approach, the participants stressed that the government should finalise arrangements and pacts with countries like Iran, Afghanistan, Tajikistan and other Central Asian states.

Making recommendations, the experts demanded that the government should formulate on an urgent basis the policies and strategies to develop and harness available alternative and indigenous energy resources like renewable energy, micro hydel and coal.

They said the government must prioritise and make handsome allocations for renewable energy sector so that indigenous resources and coal potential could be harnessed.

Naseer Memon, a development professional, was of the view that natural energy resources should be the sole property of provinces and in this connection the government should ensure financial, administrative autonomy to the federating units for equitable distribution of resources.

“It should be safeguarded constitutionally so that oil and gas producing districts should get direct royalties,” he said.

Dr A H Nayyar, an energy analyst, said that in order to discourage consumption of imported oil for road transportation in the country, the government must make investments in the railway so that the dying mode of railway transportation should be revived and utilised effectively.

The speakers also urged that more efforts should be put in to get energy resources taped in Balochistan by improving political and socio-economic environment.

Samina Khan, executive director of the Sungi, said sufferings of the people were increasing and hoped that the policymakers would consider energy generation other then hydro on priority basis.

Asad Rahman was of the view that there was need to include civil society voice in the decision and policymaking processes.

The speakers were of the view that the government should ensure equitable distribution of energy among all provinces, regions and areas without any discrimination.

They urged the government to demonstrate good governance by ensuring that loss levels are reduced to 13 per cent as against 23 percent in the Wapda and 39 percent in the KESC. This will save over Rs50 billion annually resulting in reduction of tariffs and subsidies, they added.

The experts said overhead expenses of energy distribution companies, including purchasing companies, should be reduced by 10 per cent to save another sum of Rs10 to 20 billion annually.

They said the circular debt in the energy sector which varies at times between Rs50 billion to Rs100 billion causing delayed payments to the PSO and IPPs should be resolved permanently.

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