News
Thursday, September 15, 2011
Pak-US Energy DialogueUS expresses concern over reemergence of circular debt
* American energy team stresses upon Pakistan’s economic managers to resolve circular debt issue once and for all
Staff Report
ISLAMABAD: The US on Wednesday expressed concern over the reemergence of circular debts and stressed upon Pakistan’s economic managers to resolve this issue once and for all.
On the first day of the fourth round of the Pak-US Energy Dialogue, PEPCO, WAPDA and the Economic Reforms Unit completed their presentations on energy sector issues. A crucial Pak-US dialogue on energy is to be held today (Thursday), where the US is expected to pledge some assistance to help overcome the present energy crisis in Pakistan.
During the dialogue, a presentation on power sector reforms, including power regulatory issues and the mechanism used to determine the power tariff, was delivered, while WAPDA informed the US team that the country had vast potential in hydel power generation, adding that lack of investment had prevented them from capitalising on hydel resources.
Sources said that PEPCO officials raised the fuel deficit issue and stressed the early resolution of receivables of fuel supply companies.
Earlier, the US team, led by Special Envoy and Coordinator for International Energy Affairs Ambassador Carlos Pascual, met with the Finance Minister Abdul Hafeez Sheikh.
The finance minister, while talking with the US team, emphasised the importance of technical support and shared understanding with the US for the resolution of technical issues Pakistan was facing in the energy sector.
The finance minister briefed the US envoy on the work being done by the Cabinet Committee on load shedding and highlighted the recommendations of the Committee on the resolution of circular debt and hoped that the issue would be resolved soon.
He informed the envoy of the upward trend liberal incentives in the economy had created, saying that remittances had come up to more than $11 billion, that there was a twenty percent increase in exports, which had come up to $24 billion and that there was more than $17 billion in foreign exchange reserves.
He said that the government was committed to strengthening the energy sector for overall economic development and that in order to achieve the target of overall economic development, the government had attached tremendous importance to the revamping of the electric power sector through structural reforms, including good corporate governance and strengthening of the regulatory system.
Carlos Pauscal said that the US was fully committed to working with Pakistan in the changing political and economic landscape. He said that Pakistan had done a commendable job in economic reforms.
He said that Pakistan had to indicate strategically targeted projects where the US could come up with technical and financial support, and in this connection he also emphasised that ways and procedural matters be fully discussed as there were investments of millions of dollars involved.
Courtesy www.dailytimes.com.pk