Govt buys electricity at Rs 25 per unit and sells at Rs 9: Kaira

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Information Minister Qamar Zaman Kaira on Sunday said the government was buying electricity at Rs 25 per unit from power producers but was selling it to the public at Rs 9 per unit.
Addressing people after opening a shopping mall, Kaira said the government was aware of problems of the people after the rising shortfall of electricity.
“We know that load shedding has made the lives of people difficult. Unemployment is on the rise and there is shortage of drinking water but unfortunately water level has receded in dams and electricity is not being generated as required.”
He said in the situation demonstrations and protests by people were legitimate. He dispelled rumours that China was ready to provide electricity to Pakistan at Rs 500 for a house and said it would require at least five years to set up poles between the two countries.
Kaira said all resources were being utilised to end load shedding, adding that the PPP-led government had allocated Rs 422 billion in the 2012-13 budget to provide subsidy on electricity while in the previous fiscal year this amount was Rs 50 billion.
The information minister said work on several energy projects including Bhasha Dam, Thar Coal, Neelam, Kohala and solar energy was in progress and the duration of load shedding would be reduced soon.
He said the country was also facing the consequences of blocking NATO supplies. “If we clash with the superpower, the nation will have to face its fallout,” he added.

16 COMMENTS

  1. Sir,
    Let identify those who committed this national crime for a expensive option based on imported fuel when we got huge potential of coal and hydro-power. Do we have courage to name the names? After all, there must be someone responsible for making such a fatal blunder in the context of our national economy. As a consequence, we are in mess that only a miracle can take us out. No one from the outside compelled us to make such strategic mistake.

    • He may be correct for this blunder! He should also mention PPP was the first one to make such agreements for IPP and also on worst terms for Pakistan future generations. Its was PPP government in 80's and 90's that promoted thermal, gas and oil based power stations instead of initiating super cheap hydel power projects. On top of these expensive tariff agreements with these micky mouse power producers even the thermal ones based on imported coal or expensive gas use at fixed guranteed cheaper rates and guranteed expensive buying rates from them.
      They cared about kick bags offered with the deals not thinking long terms. No where in the world govt do such thing, either you link price with cheaper fuel provided to them or you set tarif for buying without linking fuel.

      years down the line, this huge debt is actually eating up govt funds, while they dont recover bills. more fuel import means, precious foreign reserves has to be spent too, this whole thing is bringing Pakistan down. Its not loadshedding, its actually death of Pakistan economy.

  2. What a bullsheating statement by bullsheater Kaira.Why the central govn so irresponsible shame on the or resign at once

    • Why u got offensive on a factual statement? Please, provide some solution, a solution which can quickly resolve this problem within 3 months. Even Imran said that he could not resolve this problem immediately and Shahbaz said that he just prepared plans for some power plants within last 4 years. This crisis resulted from political unstability we have everyday and unexpected changes of govt every 2nd or 3rd year since 1988 except for 9 yrs period of Musharaf. One govt makes policy and another puts in shelf, like Nawaz Sharif cancelled a 5000 MW TharCoalPower in 1997, and Musharaf could not keep track of growth in economy and his govt since 2002 was dealing with terrorism and political upsets. Then from 2008 this govt was put on hooks every 3rd month by irresponsible media and a partisan SC and political activism by SC. You cannot separate economy from politics both are interlinked.

  3. I have read the statement of information minister or should we call him Disinforamtion minister. He has failed to mentioed some obvious fact which are major factors for this short fall. Pakistan has adequate or close to installed capacity to meet the demand. .problem is inability to pay for fuel to run thermal power stations. PEPCO cant recover revenues and as a result the unpaid electricity is counted as losses. Why people dont pay for electricity. They should take concrete step to recover revenues. The other major factor is blatant mismangement either due to rampant corruption or due to absolute incomptence of people runiing these organizatios. If government appoint P.M Jail mate like Adnan Khwaja to run organization like OGDC then what can you expect. Minister like Pervaiz Ashraf ( a property dealer a dalaal by profession) cannot possibly have vision to deal with these comlex issues. More over funds be raised to buy fuel. here are some suggestion

    • Why u got offensive on a factual statement? Please, provide some solution, a solution which can quickly resolve this problem within 3 months. Even Imran said that he could not resolve this problem immediately and Shahbaz said that he just prepared plans for some power plants within last 4 years. This crisis resulted from political unstability we have everyday and unexpected changes of govt every 2nd or 3rd year since 1988 except for 9 yrs period of Musharaf. One govt makes policy and another puts in shelf, like Nawaz Sharif cancelled a 5000 MW TharCoalPower in 1997, and Musharaf could not keep track of growth in economy and his govt since 2002 was dealing with terrorism and political upsets. Then from 2008 this govt was put on hooks every 3rd month by irresponsible media and a partisan SC and political activism by SC. You cannot separate economy from politics both are interlinked.
      You cannot have strong economy in a politicaly unstable country where institution try to over-cross their constitutional limits. If institutions keep on fighting and some institutions do not do their work and try to interfere in executive domain like SC. I wonder why SC interferes in executive domain to rectify executive, when it has failed to set its own house(Judiciary) in order. SC cud not improve situation in judiciary during last 4 yrs, how come it wishes to set right Executive which is 100 times more complex job than Judiciary

    • Why u got offensive on a factual statement? Please, provide some solution, a solution which can quickly resolve this problem within 3 months. Even Imran said that he could not resolve this problem immediately and Shahbaz said that he just prepared plans for some power plants within last 4 years. This crisis resulted from political unstability we have everyday and unexpected changes of govt every 2nd or 3rd year since 1988 except for 9 yrs period of Musharaf. One govt makes policy and another puts in shelf, like Nawaz Sharif cancelled a 5000 MW TharCoalPower in 1997, and Musharaf could not keep track of growth in economy and his govt since 2002 was dealing with terrorism and political upsets. Then from 2008 this govt was put on hooks every 3rd month by irresponsible media and a partisan SC and political activism by SC. You cannot separate economy from politics both are interlinked.

  4. 1) Goverment should reduce expenditure by not providing high salaries to MNA, and ministers and curtailing their perviligaes.
    2) stop spending money on their useless trip which are of no benefit to Pakistan
    3) Zaradari and his cronies and people like Nawaz Sharif should bring back money from his foreign accounts
    There is also lack of planning. Any civilaized country in this day and age plan short term and term measures. It looks like there was no planning at all.
    I believe that load shedding can be reduced considerably by looking for efficiencies with in current resources.
    This disinformation mnister should admt their incompetence. If they dont acknowledge that they will never find solutions.
    If this government cant handle it thaen why dont quit and hand over the government to people whi can do somethnig. There is no point in blaming opposition for demonstarion. you cant blame people who have to live in sub human conditions. Simple principal is if you perform no body will or will be able to protest.

  5. This site is not letting me post suggestions which is continuation of my previous post.

  6. 1) Goverment should reduce expenditure by not providing high salaries to MNA, and ministers and curtailing their perviligaes.
    2) stop spending money on their useless trip which are of no benefit to Pakistan
    3) president and his cronies and people like Nawaz Sharif should bring back money from his foreign accounts

  7. @ Rizwan
    Your challenge for proposing solution is valid one; however, issue under discussion is different. Your point about the Thar coal project carries weight too. However, in my opinion, this kind of game was not just political only but hypocritical too. One party did not want to have environmental friendly and cheaper hydro-power to be produced only because of regional narrow and selfish considerations. Other party while canceling Thar coal project repeated the same mistake by foregoing the indigenous fuel option as a reaction as well as environmental consideration (only an excuse). This game started sine Tarbela dam came on line in seventies. So, it is not a matter of three months as being claimed, these selfish and cruel games started a quarter century back and there seems to be no end in sight. The greatest dis-service to nation then remains the decision that our leaders took for imported fuel to run private power units and then recently rental power plants. In the process of political point scoring, our mainstream party leaderships let the indigenous fuel option go in vain. Before, we had only India against building dams for power generation, now we have oil and international power producing lobbies to discourage coal as well hydro-power options to generate cheaper electricity. Even for Imran Khan, it will be an uphill struggle to convert these so-called IPPs on indigenous fuel like coal or go for run-of-the-river hydro-power plants. So, who started this game and then who reacted to repeat similar colossal mistake are all responsible for current mess we are in. We should be honest enough to call spade a spade and stop taking sides on the basis of political affiliations as this game has already destroyed well-being of our people, country and industry for good.

  8. @ Rizwan

    Obsessed and fixated with the love for the anti-SC. Deprived of the ability to find sense and reason in anything……i think government should check with malik riaz if he could fund the energy crises!

  9. What? Does he really believe that we will swallow this hogwash? The problem is circular debt caused by economic mismanagement.
    In simple terms, pay your bills Government of Pakistan and your provincial daughter governments.

    The PPP doesn't care about the awam. Neither do the various wings of the PML

  10. Here are few things Pakistan needs to do urgently without making mickey mouse notice reports but with pure actions.

    1. All the gas or furnace oil fired plants should be converted to thar coal fuel, saving huge.

    2. Pakistan should embark on all kinds of dams at once putting all resources towards it, in 5 years Pakistan will be surplus in cheaper electricity and we can then say buy buy to these white elephants of the past.

    3. Should use our nuclear expertise towards people use and build more nuclear based power generation

    4. Use renewable sources to full extent, solar and wind must be used

    5. Sell and get the money from distrubution companies, dont let them put down on line losses, make them responsible for it, once done they will curb the theft.

    6. Create awareness for energey conservation and impose standards on appliances used in the country to a minmum standards. Gas guzalers biolers, room heater should be banned and replaced with energy efficient ones. Electric appliances should also put to follow a set standards. Houses should be insulated. Sames goes for industries.

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