Govt working on targeted subsidies on power: PM
Prime Minister Imran Khan said on Monday that the energy sector was very important for the country's economy, and stressed that the government was fully focused on meeting energy needs of all sectors.
Chairing a review meeting on energy sector, according to a statement issued by the Prime Minister's Office, the prime minister said that work was under way to provide targeted subsidies to the deserving consumers.
During the meeting, Imran was given a detailed briefing on the current situation in the energy sector. The prime minister emphasised that the energy sector was very important for the country's economy.
“The government is fully focused on meeting the energy needs of all sectors,” the prime minister, according to the official statement. He added that work was under way to provide targeted subsidies to the deserving consumers.
The meeting was attended by federal ministers Omar Ayub, Khusro Bakhtiar, Dr Hafeez Sheikh, Hammad Azhar, Shibli Faraz, advisers Razak Dawood, Dr Ishrat Hussain, Special Assistants Dr Waqar Masood, Nadeem Babar, Tabish Gohar, K-P Finance Minister Timur Saleem Jhagra and others.
During the meeting, Energy Minister Omar Ayub, Special Assistant Tabish Gohar and the energy secretary briefed the meeting about the improvement in power distribution system. They also apprised the prime minister of the current status of the circular debt.
Referring to the renewable energy policy, Ayub said that the government policy had enhanced the investors’ confidence. Special Assistant Nadeem Babar informed that meeting the government had taken timely steps for the benefit of the gas consumers.
ML-I project
Separately, Imran chaired another meeting to review the Main Line (ML)-1 project, days after Beijing sought additional guarantees before sanctioning $6 billion loan for the “most expensive project” of the China-Pakistan Economic Corridor (CPEC).
During the meeting, which was also attended by Railways Minister Azam Swati and the CPEC Authority Chairman Lt Gen (retd) Asim Saleem Bajwa, the prime minister received a briefing on the progress made on project so far, the official statement issued after the meeting, stated.
The ML-1 project includes dualisation and upgrading of the 1,872km railway track from Peshawar to Karachi and is a major milestone for the second phase of CPEC. “ML-1 is one of the most expensive projects of CPEC”, the prime minister told the meeting.
Last week, it was reported that China raised the issue of additional guarantees for the $6 billion loan for the strategically significant project during the third joint ML-1 financing committee meeting, because of a weakening financial position of Pakistan.
The Chinese authorities asked for the additional guarantee mechanism for project loan after Islamabad sought debt relief from G-20 countries, which was only meant for the poorest nations of the world.
During the review meeting on Monday, the prime minister was given a briefing on the ML-1 project and current developments. The official statement stated that Prime MInister Imran expressed satisfaction over the progress made so far on the project.
The meeting was also attended the deputy chairman Planning Commission, secretaries of the railways, economic affairs, finance and planning division and the relevant senior officers.
Describing the ML-1 “a great example of Pak-China friendship, Imran said that the project would establish a modern communication infrastructure of international standard in Pakistan, adding that the project would help develop the domestic industry and create employment opportunities.
With the project, Imran said, the land connectivity of Pakistani ports would improve and Pakistan’s exports would reach the international markets in a timely manner, stressing that it would provide valuable foreign exchange.
The railways minister briefed the prime minister on the integration plan of ML-1 project by the Pakistan Railways. The official statement did not say if the issue of China seeking additional guarantees for $6b new loan was discussed during the meeting.