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PM accords in principle approval to energy sector reforms
ISLAMABAD, Sept 28 (APP): Prime Minister Syed Yusuf Raza Gilani on Tuesday approved in principle the reforms in the energy sector in order to improve its performance and establish it on a sustainable base.The country, he said, cannot afford to allow public sector enterprises to keep bleeding.The Prime Minister accorded the approval in principle during a special meeting held here in the Prime Minister House on Tuesday to examine the proposed power sector reforms.Earlier, the Deputy Chairman of the Planning Commission explained the salient features of the proposed reforms and their possible impact. The presentation was prepared after broad consultation with energy experts, concerned ministries, business groups as well as donor agencies’ experts.It was recognized that the energy sector reforms are of central importance for the revival of economy and for maintaining fiscal discipline.
It was observed that if a comprehensive reform plan is not pursued, the burden of PEPCO subsidies may surpass Rs. 225 billion during the financial year 2010-11, which would be grater than the budget of the entire civilian government.
The Prime Minister directed that besides structural reforms, such as un-bundling of PEPCO, independence to DISCOs (Distribution Companies) and improvement in management efficiency, the fuel mix should also be altered to provide more gas to the energy sector in order to lower the cost of electricity.
He further directed that the provinces should also be taken on board regarding the Energy Reform Plan after its approval by the Cabinet. He also emphasized that the people be apprised of the facts through interaction to explain the logic of the reforms.
The meeting was attended by the Finance Minister, Minister for Water and Power and other members of the economic team.
Courtesy www.app.com.pk