Energy summits aimed at managing the loadshedding are becoming a yearly fixture. Last year, a two day summit of the kind was called to assess the recommendations of the three-member ministerial committee on energy headed by Dr Hafeez A Sheikh. The aim of the exercise was to determine whether these were practical and to gauge whether they would cause any negative political fallout. This year’s conference is aimed at taking all stakeholders on board to formulate the energy conservation strategy for the summer. Hopefully, this time too the four provincial ministers would be taken on board to extend political ownership to the decisions. Again, the summit is likely to undertake what have become routine measures: holiday for two days a week, closure of markets at 6 pm, equity in power loadshedding in all areas of the country, and diversion of gas from industrial sector to power sector.
There is one important difference this time. The government has forged a much larger coalition this year which should provide it confidence to take some of the bold decisions that it stopped short of last year. Measures need to be taken to resolve the issue of the circular debt which continues to be the bane of the power sector, leading to failure on the part of the IPPs to realise the full generation capacity of their units. There is a need to cut subsidy on oil and gas. The prices of both items need gradually to be brought at par with the international market. While this is being done, targeted subsidies have to be provided to the poorer consumers of petrol and gas including motor cyclists and rickshaw drivers. This would subdue the protests over rising prices. Meanwhile, measures should be taken to import gas from Iran and Tukmenistan at the earliest.
While short-term measures have to be taken what is needed is to take some of the vital decisions also. There is a need to go for all non-controversial dams. Equally important is to initiate and popularise water conservation strategies. To add to the power grid, conditions conducive for foreign and local investment have to be created in the energy sector.
