Race against time
The PML-N government faces the uphill task of overcoming power shortages through enhancing power generation. What is more, the cost of production has to be brought down to fulfill the promise to provide affordable power to consumers. The task has to be completed before 2017 as promised in the power policy though Shahbaz Sharif, who is actively associated with implementing the policy had vowed to end load shedding in two to three years. The desire to convert power generation facilities from oil to coal, which is much cheaper, is understandable. Work on the coal-fired Gaddani Power Park and the Port Qasim power plant has to be initiated in earnest at the earliest and constantly monitored to avoid delays. It is equally important to pursue the Pak Iran gas pipeline project to help produce cheaper power. One wonders why the finance minister was apologetic in Washington on the issue by putting the responsibility for the project on the previous government, which according to him gave sovereign guarantees to Iran that require damages in case of default.
The government will have to overcome formidable problems to achieve self-sufficiency in power sector. The Gaddani Power Park with 10 power plants put together having the capacity to produce 6,600MW electricity carries the estimated tab of around $14 billion. Four of its 10 power plants are supposed to be installed by China provided Pakistan government sets up the first plant. The rest are to be offered to private sector. With the financial crunch faced by the country, the raising of funds for the project would be one problem, while luring domestic and foreign investors for the remaining five units another is another obstacle. A determined government will hopefully overcome both. One also hopes the Burj Power Corp would develop the first phase of the 500MW power plant on Port Qasim in time. The completion of the 1,000-MW CASA project is predicated on peace in Afghanistan and a reining in of the terrorist activity in Pakistan. As things stand the Pakistani Taliban remain a big threat to the project which is widely considered to be US sponsored.
The finance minister is upbeat about his achievements during his latest visit to the US. Washington has opposed setting up of coal-fired plants in the past as well as the Pak-Iran gas pipeline. One will have to wait and see if it has really changed its stance after talks with Ishaq Dar.
