News
Sunday, August 05, 2012
Govt urged to stop interference in energy sector* LCCI president says US report on political interferences in energy sector an ‘eye-opener for all’
Staff Report
LAHORE: Lahore Chamber of Commerce and Industry (LCCI) President Irfan Qaiser Sheikh, on Saturday, said that the government had been stressed to stop political interferences in the energy sector, control line losses, electricity theft and inefficiency in recovery of dues, to help get rid of energy crisis that had reduced the country’s economic growth by three to four percent in the last two years.
Sheikh said that the US report on political interferences in the energy sector was an “eye-opener for all”, as it was not only the economy that faced a meltdown-like situation, instead, the entire country had been gripped by multiple challenges due to an acute energy shortage.
The LCCI president said that effective governance was critical for economic reforms but if political interferences continued to undermine the decision-making then an economic turnaround in coming years could not be expected.
Sheikh said that the business community had been calling on the government, for a long time, to introduce the much-needed reforms in the energy sector but unfortunately all its appeals had fell on deaf ears, which had led to huge cuts in the economic growth of the country.
He said that three to four percent cuts in the economic growth meant fewer job opportunities and little local and foreign investments.
“The foreign investors generally take cue from local investors. If local businessmen are putting their stake in new ventures, the foreigners will also follow suite, but unfortunately in Pakistan both local and foreign investments have registered drastic decline,” the LCCI president said.
Sheikh warned if the government did not implement fundamental reforms in near future, the energy situation could aggravate and further create serious challenges for the government.
He also invited the attention of the government towards Rs 160 billion line losses and electricity theft, Rs 120 billion on account of inefficiency in recovery of bills in the last financial year. “The system suffered a huge loss of Rs 160 billion in the last financial year just on account of electricity pilferage and transmission, and distribution losses,” he said.
“Peshawar Electric Supply Company (PESCO) braved an over Rs 50 billion hit, which is one-third of the total losses. These figures have been worked out as per the claims of the government, which is facing an average of 19.5 percent line losses,” he added.
“Further, in the jurisdiction of PESCO, the electricity theft ratio stands at 30 percent, Hyderabad Electric Supply Company at 19 percent, Sukkur Electric Power Company at 25 percent, Quetta Electric Power Company at 22 percent, whereas, in the whole of Punjab, electricity theft stood at two to three percent only but the province is facing maximum power cuts,” Sheikh said.
Courtesy www.dailytimes.com.pk