ISLAMABAD: Minister for Economic Affairs Omar Ayub Khan on Monday said that the previous government of Pakistan Muslim League-Nawaz had abolished more than 134 Renewable Energy (RE) projects of 4,000 Megawatts to make a quick buck through the ‘LNG train,’ creating opportunities for loot and plunder of the national wealth.
Participating in the federal budget debate in the National Assembly, he said that the Pakistan Tehreek-e-Insaf (PTI) government after coming into power revived all these projects and brought a new RE policy, under which inexpensive electricity was being produced.
He said that the PML-N government gave the solar projects’ tariff of Rs23-24 per unit, which the incumbent government brought down to Rs6.5 per unit within the period of one year.
Before completing its five-year tenure, the minister said that the previous government planted ‘landmines’ for the next government by deteriorating all institutions and collapsing the national economy.
He quoted official reports of the Planning Commission and media publications of February 2018, the last year of the PML-N government in power, which showed the previous government had failed to deliver in all sectors, and the national economy totally collapsed due to its wrong policies.
“Private investment also fell far below the target of 16.7 percent despite the bonanza of the China- Pakistan Economic Corridor project. While, imports remained far higher than the target of restricting to $31.1 million,” he read from one the reports.
Ayub said that the PTI government inherited a $20 billion current account deficit from the previous government that also failed in controlling the fiscal deficit.
He said that Matiari to Lahore High Voltage Director Current (HVDC) transmission line was near to completion, adding that the government was dealing with the issue of capacity charges ‘fixed-payment’ so that it could be matched with the quantum of planned supply.
The minister said that in 2013, the capacity payment [whether you use or not] was Rs185 billion that increased to Rs468 billion in 2018, due to the PML-N government’s wrong agreements of ‘take or pay.’
“Today 70 percent energy-mix of the country depends on the imported fuel,” he observed, adding this year the capacity payment would reach Rs 860 billion and by 2023 it would be Rs1,455 billion due to faulty strategy and policies of the previous government.
The PTI government, Ayub said, had renegotiated the agreements which would help save Rs4,000 billion in the next 15 years.
He said that during the PML-N tenure the Residual Fuel Oil (RFO) usage in power plants remained 29 percent, which the PTI government brought down to 4 percent. “With this, we saved billions of rupees.”
Ayub said that an amount of Rs64 billion was payable to the Pakistan State Oil by the Nandipur Power project management, but when the record was checked, it came to know that the payment had been made but misappropriated by the previous government.
Recounting the incumbent government’s achievements, he said this year the flow of circular debt had been reduced by Rs100 billion as compared to 2018, by shutting down inefficient plants and renegotiating the agreements.
He said that the PTI government spent more than Rs49 billion in up-gradation of electricity transmission lines, and during last summer as many as 25,000 MW electricity was transmitted through the system, which at 18,000 MW in 2018 – the last year of the PML-N government.
Commenting on LNG, he said that in 2017, the Punjab government approved the 4th LNG-based power plant at a cost of Rs80 billion without any agreement and keeping in view its viability. He said the National Power Control Centre had informed in writing that the plant would remain 90 percent closed in a year.
The minister said that the PML-N during its tenure also signed expensive LNG import agreements on ‘take or pay’ basis that caused billions of rupees loss to the national exchequer. Besides it declared the LNG petroleum product and with this the gas sector’s circular debt had reached Rs300-350 billion. “It was for the first time that the gas sector faced circular debt.”
Whereas, he said, the PTI government signed a new 10-year LNG agreement, after expiry of one of the two existing contracts, with Qatar at 10.2 percent of the Brent, which would help save an amount of $3.5 billion in the commodity’s import.
He said that the PML-N government collected an amount of Rs 295 billion on account of Gas Infrastructure Development Cess (GIDC) but it [collected amount] had no trace in any file, terming it another proof of the previous government’s corrupt practices.
Ayub said that a Planning Commission report of the PML-N’s tenure had stated that loans had to be taken as debt-to-GDP ratio had increased, adding the current account deficit surged due to wrong the exchange rate policy [by artificially maintaining dollar at Rs100 for four years] of the previous government, causing a loss of $23-24 billion.
Commenting on the performance of the Pakistan People’s Party government in Sindh, he said that around Rs1,220 billion still unspent, which were meant to execute different projects, in the province, even after the passage of years. “It speaks about the seriousness of the PPP government towards welfare of the public and uplift of different sectors of public interest.”
The minister recounted the PTI government’s welfare-oriented initiatives introduced in the budget and expressed confidence that the country would progress under the leadership of Prime Minister Imran Khan.
Based on good performance, he said “the PTI government will again come into power after the Election-2023.”
