The government has opted to request a waiver from the US regarding the Pak-Iran gas pipeline project, as revealed by Minister of Petroleum Mossadegh Malik during an informal exchange with journalists.
Additionally, Minister Malik voiced concerns over rising gas prices, highlighting that regardless of fluctuations in the dollar’s value, companies persist in seeking price hikes. He noted that a significant portion of the population lacks access to gas, with only around 25 to 27 percent being served.
Regarding electricity, Minister Malik emphasized the necessity of providing affordable options, suggesting that generating electricity from local gas sources could substantially reduce costs, potentially down to Rs 10 to 12 per unit. He proposed even lower rates, ranging from Rs 5 to 6 per unit, by operating plants at the wellhead price.
In an effort to conserve gas, the focus is on delivering inexpensive electricity to citizens. Minister Malik mentioned the importation of oil from Russia through private channels and discouragement of captive power plants.
Regarding taxation on petroleum products, Minister Malik expressed uncertainty, while affirming Pakistan’s intent to secure exemption from US sanctions on the gas pipeline project with Iran.
He underscored the significance of Iran’s gas supply, reiterating the desire to complete the project unhindered. Minister Malik highlighted the efficiency of existing LNG power plants and the potential for converting them to utilize local gas for cost-effective electricity generation, emphasizing fair competition in the energy sector.
Minister Malik also addressed the staggering debt within the energy sector, stressing the need for reform to alleviate the burden of this debt, which has reached 5000 billion.
