Law Minister Senator Azam Nazeer Tarar, while responding to a calling attention notice in the Senate on Thursday, underscored the rationale behind the energy policies, particularly the provision of subsidised gas to industries for electricity generation.
The minister explained that the initiative was introduced during a period of acute power shortages to safeguard industrial operations from production losses and equipment damage caused by frequent outages.
However, with the availability of electricity and reduced industrial demand, the burden of capacity payments compensations to power producers for unused electricity has increased, contributing to higher costs for consumers.
Regarding Pakistan's engagement with the International Monetary Fund (IMF), the minister noted that while there was an opportunity to conclude the programme in 2016, subsequent political developments required continued negotiations under lender-imposed terms. He likened international loans to domestic bank loans, emphasising the necessity of adhering to conditions set by creditors.
In negotiations with the IMF, the government secured a conditional continuation of gas supply to captive power plants instead of an immediate termination.
Under the agreement, a phased imposition of a levy over 18 months has been approved to encourage industries to transition to the national grid and ensure fair gas pricing.
The minister also underscored that the policy applies uniformly across all provinces. He assured that the government remains dedicated to implementing policies that foster economic stability and growth.
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