ISLAMABAD: Minister for Petroleum Shahid Khaqan Abbasi and the Minister for Water and Power Khawaja Mohammad Asif criticised regulatory bodies and a fellow government department – the Planning Commission – stopping just short of calling it an anti-state policymaking body.

“I have said it before, I feel that if the Planning Commission had existed at the time, Emperor Shah Jehan could never have built the Taj Mahal,” Asif said at a seminar on ‘National Security: Pakistan’s Energy Requirements’ organised by the Institute of Strategic Studies on Wednesday.

Asif called the commission “detrimental to national interest” and said the body’s expertise lay in delaying and derailing key national projects.

“We need a fast, and target-oriented, system,” he said. Beside him, the petroleum minister called for the disbanding of the commission entirely.

Energy ministers criticise energy regulators, govt department

“These are my personal views. I feel that the Planning Commission should cease to exist as soon as possible if we are to move forward in resolving the key issues facing the country,” Abbasi said.

Both ministers also criticised the Oil and Gas Regulatory Authority and the National Electric Power Regulatory Authority (Nepra).

Khawaja Asif expressed his support for the privatisation of power sector entities and said that employees and officials were trying to thwart the privatisation of distribution companies.

He said that Nepra reported that the privatisation of the Karachi Electric Supply Company (KESC) was a failed venture because the company was failing to meet performance standards.

“This is possibly because the regulator was not able to ensure that one of the entities should improve itself,” he said.

“KESC has not achieved its performance standards maybe because Nepra was not a good regulator.”

“We thought that having know-how of the power company would have made him a better policeman of the sector – but that was not a good idea,” he said, regarding Nepra chairperson Brig Tariq Sadozai.

Subsidy

Both ministers said that the government has reduced subsidies to the power sector by 50pc, from Rs280 billion to Rs121 billion.

“The days of cheap energy are over, but what we can do is manage to have it at an affordable level,” Abbasi said.

“We are trying to have a best of energy mix, but I need to make it clear that hydel electricity is the most expensive mode of power.”

“The best example is the Neelum Jhelum power project,” he said, adding that “The hydel project is costlier than gas-based power production over around 20 years – even nuclear is better.”

He said the LNG project would be a game changer in the energy sector, but blamed various grounds for working against it.

“The nation is full of discussions and activism that have damaged some key projects,” he said.

“Mashaal was a good project but was mishandled and the courts intervened as a result – but we cannot ignore the role of the oil mafia who are against the import of LNG.”

Khawaja Asif said that the government is also facing pressure from the IMF to curtail its power sector subsidy.

“But we will continue to give subsidies to lifeline customers,” he said, adding that the best option for the country was to opt for a balanced energy mix.

Islamic State

Khawaja Asif, who is also the defence minister, responding to a query from the media, called Russian intervention in Syria a welcoming sign.

“We welcome the move by Russia as it will help in the fight against the terror group,” he said, referring to Daesh or Islamic State (IS).

However, when asked about the West’s opposition to Russian intervention, the minister said IS is not a threat to Syria alone, saying that, “IS is a threat to the whole of humanity.”

He added that, “Pakistan will continue to support the fight against the terror group within our limits.”

Published in Dawn, October 8th, 2015

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