Energy, economic crisis outcome of mismanagement, lack of accountability: Speakers-2907-News

Speakers at a discussion entitled on energy and economic crisis said only a change of attitude and life style can help overcome this national level crisis. They said the reasons behind energy and economic crisis are poor management, lopsided priorities and lack of accountability.

The dialogue series on the energy and economic crisis here on Thursday was first of the series of dialogue organized by Sustainable Development Policy Institute (SDPI) in coordination with South Asian Free Media Association (SAFMA).

Zia Ud Din Ahmed, Executive Editor, Daily Express Tribune moderated the proceedings.

Dr. Abid Q Suleri, Executive Director SDPI, while discussing the issue with participants from cross-section of society said that in the last 5 year GDP growth in Pakistan is facing boom and bust phenomena. Decline in GDP growth has been observed in previous years, which at present stood at 3 percent now. However, he said, it is important to know that consumption is leading our GDP growth other than manufacturing, production or industry. He said that poor tax policies, power sector issues and weak governance are reflecting our weak fiscal health. Dr.Suleri gave an insight about future by saying that the upcoming government has to face a challenging situation due to power sector circular debt, stock of unpaid commodities, PSE contribution towards fiscal deficit and devaluation of currency. “It is continuous 4th year gwe are witnessing low GDP growth due to energy crisis”, lamented Dr Suleri. Further he added that Nepra has come to 88 percent deficit in collection and transmission losses. Giving solution to the problem, he said, Nepra has to be depoliticized and made an independent authority.

He also demanded reduction in the cost of generation of electricity, improvement in hydro generation and building of large dams. “Water supply is poor in the country which can also affect our agriculture and food security. He suggested that the next government has to learn from the mistakes of previous governments and has to propose a reform agenda without being biased to provinces. “Reform the PSE, promote public private partnership, rationalize the procurement of sugar and end this SRO culture”, he stressed.

Jan Achakzai, renowned economist said that Pakistan is facing serious energy crisis that is affecting its economy and the various sections of the society. The political leadership needs to engage itself in policy planning immediately besides helping the country attract much need investment in different sectors. He cited the example of Argentina and Greece economic decline in this regard and suggested that Pakistan need to avoid falling in such a situation at all costs. “To avoid this situation we have to change our economic policies radically with the help of expert’s input and resource mobilization” said Achakzai. While talking about tax collection he said that only salaried classes are paying taxes while rich and influential including bigmost business houses are not included in the tax net.

Dr. Vaqar Ahmed, Deputy Executive Director SDPI while deliberating upon the solution aspect of the matter proposed various strategies. He suggested that Pakistan has to follow the integrated plan proposed by previous government and also consolidate all the energy ministries and departments into one ministry. He gave the example of India which rightly and timely deregulated its energy sector. He said that India, United State, China and Germany have expressed interest to invest in Pakistan’s energy sector but for that we need pricing and operation reform, control on line loss, reform for attracting investment in energy sector and developing a clear audit system. He stressed the need for making energy conservation a priority at government and non-government level beside addressing the circular debt issue. He criticized the role of Pakistani academia on energy sector and said not a single research paper has been originated and published by them on the energy crisis.

Speaking as discussant Mubarak Zeb, a senior journalist said that unprecedented devaluation of currency, incidence of taxation, special tax on petroleum increases the price of petroleum rate in domestic market.