In a recent press conference held in Islamabad, opposition leader Umar Ayub and PTI leader Shibli Faraz voiced strong criticism against the current administration’s handling of the energy sector. Ayub highlighted a drastic increase in electricity tariffs, noting that under the leadership of PTI’s founder, the rate was 17 rupees per unit. He pointed out that this rate has now escalated to 85 rupees per unit, significantly impacting consumers. He also criticized the government for its reliance on imported fuel for 70% of the power projects, asserting that power plants should be located in areas with high electricity demand.
Government’s Financial Commitments and Circular Debt Concerns
According to Ayub, the current government cannot tackle the circular debt issue effectively while it was managed well under PTI. He said that during PTI’s tenure, much progress had been made in reducing circular debt, but now it has reached Rs 45-50 billion.
Ayub doubts Shehbaz Sharif’s recent announcement of giving 50 billion rupees to the energy sector, saying it will not be enough and that this sector will remain unsolved even after this allocation. According to him, these are not sufficient amounts of money.
Criticism of Past Agreements and Imported Fuel
Umar Ayub further criticized the previous administrations for their energy agreements, highlighting that 70% of the power projects were based on imported fuel. He argued that these projects should have been placed in load centers to optimize efficiency. As per Ayub, Pakistan has a power age limit of 43,000 megawatts. Yet its interest has contracted because of the downturn. He blamed the authorities for not supplying enough power to people and mishandling the circular debt issue.
Shibli Faraz’s Assessment of Historical Decisions
Shibli Faraz echoed Ayub’s sentiments, expressing frustration with the historical decisions that have led to the current crisis. He criticized the PPP-led government for initiating the IPP projects and the subsequent agreements made during the PML-N government. Faraz accused the current rulers of exploiting people with low incomes and pursuing their interests. Stating that previous agreements involved expensive power plants bought at inflated prices. He argued that these costly decisions have resulted in substantial financial losses, with the public bearing the consequences.
Faraz concluded that the energy sector issues, which have been building up for decades, are now overwhelming the current administration. He called for reevaluating past agreements and a more practical approach to managing the sector’s challenges.
