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Water crisis biggest challenge for Pakistan: minister
LAHORE (January 14, 2003): Water crisis looming on Pakistan is the biggest challenge being faced by Pakistan for the last four years, which needs to be adequately addressed for the agricultural development and to meet the irrigation needs of the country.
Federal Minister for Interior Faisal Saleh Hayat made this remark at a meeting with the Wapda Authority during his visit to Wapda House on Monday.
Faisal maintained that the productive agriculture sector was required to be facilitated in electricity tariff to reduce the cost of inputs and help it grow more food for the people besides accomplishing provision of food at affordable rates to the common man.
Likewise, to make the industrial sector competitive in the international market, electricity tariffs for this productive sector of the economy were also required to be rationalised, as the power rates in Pakistan were high.
The Federal Minister evinced keen interest in Wapda's proposed incentive packages for agriculture and industry sectors encompassing fewer rates for use of electricity during off peak hours.
He also advised Wapda management to share these packages with the consumers concerned with a view to making the packages better and acceptable.
The Federal Minister also showed interest in Wapda's proposals and suggestions regarding reduction in electricity rates, possible by one rupee per unit provided thermal power generation input, costs of furnace oil and gas were rationalised, receivables from public sector consumers were made realised and using Wapda as a vehicle for collection of taxes and levies on behalf of CBR worth Rs 27 billion in FY 2001-02 was discontinued.
The Minister remarked that way out to reduce the electricity rates in the interest of strengthening the economy of Pakistan and give relief to the productive sectors as well as the domestic and commercial consumers, would have to be found out.
He added that the government was keen to take measures in facilitating the power consumers by reducing the electricity rates.
The Chairman Wapda, Lieutenant General Zulfiqar Ali Khan (R) gave an overview of Wapda's role in the nation building activities.
He said that cognisant of the responsibility Wapda carried in the power sector, the management was making all out efforts to better facilitate the consumers, particularly agriculture and industry sectors of the economy besides ensuring improved services to its customers.
Throwing light on the proposed incentive packages for these two productive sectors of the economy, the Wapda Chief said that the management had a sensible feel for the mainstay agriculture sector.
He assured that Wapda would provide 3,000 connections for agriculture tube wells this year, enhancing the last year's target.
He added that there was no ban on new connections for agriculture tube wells and the connections were being provided on first-come-first-served basis.
Giving the briefing, Secretary Wapda, who is also co-ordinator of "Vision 2025" Programme, informed that Wapda's revenue had increased by 100 percent since 1998-99 from Rs 93 billion to Rs 186 billion and it was hoped to cross Rs 200 billion mark at the end of current financial year.
The line losses in the system had been reduced from 42 percent to 25.7 percent.
In this regard appreciable investment was needed to upgrade the electricity infrastructure and about Rs 3 billion had been allocated for the current financial year for rehabilitation of the distribution system to further reduce the losses.
The Minister was also informed that consumers' demand for power had gone up by 14 percent, which was adequately met from Wapda's hydel and thermal power stations without any load shedding.
He was informed that in view of the fact that the prices of basic inputs for thermal power generation, furnace oil and gas were up by 136 percent and 107 percent respectively, to reduce the electricity rates, the measures proposed by Wapda needed due attention.
The Minister was also told that the fast track priority water and hydropower projects implementation was on the track as per schedule.
In view of the emphasis on hydropower, coal and gas based thermal power projects in future to do away with costly oil based projects, MoUs had been signed for Rajdhani and New Bong hydel power projects in private sector. For big Neelum-Jhelum hydel power project already offered and Kohala project funding arrangements were needed to provide the local equity.
MoU had also recently been signed for development of Jinnah hydel power project with a Chinese firm whereas MoUs for Golen Gol, Keyal Khwar and nine small hydels on canal falls had been signed with Chinese firms in Beijing last year on which the work was moving forward.
The Wapda Chief informed the federal Minister that the development activity and projects under Vision 2025 were reflective of more water, more cheap hydel power, more employment opportunities for the skilled and unskilled manpower particularly from local population at the projects, development of indigenous industry and poverty alleviation.
Courtesy Business Recorder
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Pakissan.com; Advisory Point
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