Caretaker Power Minister Muhammad Ali on Wednesday warned that gas supply for domestic consumers will be limited to 8 hours/day during the winter, as depleting natural gas reserves make it impossible to ensure a 24/7 supply.
“[Gas] loadshedding has been taking place for the past several years,” he recalled during a press conference after a meeting of the Apex Committee of the Special Investment Facilitation Council (SIFC). The practice, he said, would continue this year because the country lacked the resources to ensure supply for 24 hours. Natural gas reserves, he said, had depleted by 18 percent this year compared to their supply last year.
However, he hoped the gas shortage for industry would be resolved in December when the government expects to receive two liquefied natural gas (LNG) cargoes. “We have only two LNG terminals and limited natural gas but today we have finalized two LNG cargoes for December, which would help address the gas supply issues for the industry,” he said. Gas supply for the fertilizer sector is also being improved, he added.
Discussing the ongoing crackdown on power theft, Ali said Rs. 16 billion had thus far been recovered from defaulters. He also announced that the Apex Committee had decided to change the boards of directors of all power distribution companies (DISCOs). Additionally, he said, DISCOs would be given to the private sector through “long-term concessions.” He explained the Apex Committee had reviewed three options regarding DISCOs—give them to provinces; grant long-term concessions to the private sector; or proceed to privatization. Eventually, a decision had been taken to proceed with the long-term concession to the private sector, he added.
Caretaker Commerce Minister Gohar Ejaz, meanwhile, updated the media on the inking of a recent free trade agreement between Pakistan and the Gulf Cooperation Council (GCC). “Total per year import of the GCC is $1 trillion, while its export is $550 billion per annum. Unfortunately, Pakistan’s share in export to GCC countries is just $ 2.5 million, which is only half a percent of total exports to the GCC,” he added.
In a subsequent statement, the Prime Minister’s Office said the sixth meeting of the Apex Committee of the SIFC had been chaired by caretaker Prime Minister Anwaarul Haq Kakar and attended by various ministers and government officials, as well as Army chief Gen. Asim Munir. It said the participants had been apprised of efforts to improve the business and investment environment in the country.
The committee, per the statement, had also reviewed major macro-economic issues, including inordinate delays in restructuring/privatization of loss-making state-owned enterprises (SOEs). The meeting decided to expedite the privatization process to reduce recurring losses to the national exchequer.