Wednesday, August 29, 2012

Pakistan's Energy Scenario...Future Prospects.

Akhtar Ali in part 1 of his seminal article in Business Recorder, Pakistan,   gives an experienced, critical yet balanced view of the energy sector in Pakistan.The new developments which have taken place have some positive and some negative implications. Brent crude oil prices falling,A government policy to fast track implementation of conversion of steam turbine- based  plants which consume oil  and raise circular debt to coal , KESC reducing its losses and showing profit, decrease in interest rate, a new policy increasing well head prices therby attracting investment in local gas exploration are some encouraging points. The discouraging issues and ones which need more deep understanding and solutions are also discussed in detail.
He emphasizes on prioritizing the economic agenda and removing the hurdles to fast economic development. Pakistan has a very complex political scenario and culture. The issues are complex and require consistent and persistent dialogue, knowledge based solutions.His books on these topics are also available at Amazon. 
He has given some very doable and easy solutions like developing local coal mines which are attractive for local markets. He also points out the falsely presented and damaging issues like Thar Coal rates at 11 cents by people like Asad Omar (former Engro, Pakistan CEO) and the much lower rates of 5 cents by Chinese company Scenhua (2005) which was unfortunately not given the contract.
In Part 2 , Petroleum pricing and its linkages with electricity and gas pricing are discussed.
In Part 3, a Petroleum pricing is discussed in detail with international background and the policy initiatives by the GoP.He advises the reduction in prices by decreasing GST and PL when international oil prices are down for benefit of the consumers.He believes that zero energy taxation on all  fuels related with energy and electricity whereby subsidies should be balanced by taxation.