Staff Reporter
Islamabad
Prime Minister Imran Khan said on Wednesday that the country is forced to import costly LPG due to fast depleting natural gas reserves, pushing the circular debt of the gas sector up.
Addressing a seminar titled Sustainability, Security and Affordability of Natural Gas Supply in Pakistan in the capital, he said the country cannot afford imported gas which costs far more than natural gas.
Prime Minister Imran Khan regretted that just 27 per cent of the country’s households have access to piped gas while the rest of the population banks on liquefied petroleum gas cylinders, the cost of which is four per cent higher than that of natural gas.
There is a huge difference between prices of imported and domestic gas, he pointed out. He maintained that past governments didn’t undertake long term planning to tackle the energy crisis. The country would not have to face such crises if the right decisions were made 40 years back, he added.
Imran Khan said the government is grateful to Independent Power Producers for renegotiating the terms of their contracts with the government, vowing to apprise the nation on how much money the government saved as a result of the renewal of the contracts.
He stressed the need for consensus among provinces and the federal government on the issue of gas to steer the country out of energy crisis. He also warned that the country will face a major gas crisis this year.
“Subsidies are given to people who lack basic necessities or to remote areas that do not have adequate facilitation.
“That is how wealth is created — ultimately contributing to per capita income and GDP and, in our case, we can return the debts that we have since ages,” he added, noting that a review of relevant documents made him realise how, in Pakistan, “subsidies are given to people who do not even deserve them”. With imported gas costing Rs17 a unit, selling it for Rs14 a unit creates a gap worth Rs3 a unit, which leads to the worsening situation Pakistan is in, he said.
“We are hoping for a consensus,” he said. “Khyber Pakhtunkhwa has spoken of its interests and Sindh too has shared its opinion on the matter but, eventually, the national interest needs to be promoted too,” he added. “We know that it’s quite an expensive process but I am expecting that we can build a national consensus while bringing all the provinces on board.”
Separately, speaking of the Chinese leadership, PM Imran said the Communist Party has an “elaborate consensus building” as well as an “amazing meritocracy system”. “The Communist Party brings [their people] up to the top on merit. Ther is a system through which their leaders — Premier Li [Keqiang] and President Xi [Jinping] — came to the top after a struggle; they deliberate and bring people up with merit,” the prime minister said.
