Sanctions’ Waiver on IP: Pakistan approaches US Administration
By Newztodays Team
Pakistan has approached the US administration again to seek a sanctions’ waiver on IP gas pipeline project to meet contractual obligations with Tehran.
While addressing a press conference, Minister for Energy Dr Musadiq Masood Malik, said that Pakistan has engaged the US to waive sanctions on the IP gas pipeline project.
Pakistan has been seeking a US waiver in the past but the latter had refused to give the go-ahead to build the IP gas pipeline project.
The caretaker government had decided to build Pakistan’s portion of the 80-kilometer pipeline in a bid to avoid $18 billion penalty.
Pakistan had sought an extension in the IP gas pipeline project earlier which expired.
Tehran had given an extension again to Pakistan to start work on the IP gas pipeline project.
The minister said that Pakistan was working on seeking a US waiver on the IP gas pipeline project and building a gas pipeline at the same time to fulfill legal contractual obligations with Tehran.
About meeting with IMF, he said that it was an introductory session.
However, the government had met all the conditions of the IMF related to the power sector.
He said that the Pakistani side had informed the IMF team about the government’s intention to bring reform in the energy sector.
He announced to end a price differential between the cost and sale of electricity to bring down Rs1,000 billion in annual losses.
Despite reservations of Sindh and other provinces, he claimed that work on (weighted average of the cost of indigenous gas and imported RLNG) had been done to cut the cost of power generation.
He quoted the example of Bhikki and Haveli Bahadur Shah power plants that were more efficient whose electricity cost stood at Rs 22-24 due to expensive RLNG against the cost of local gas-based electricity generation at Rs12.
He said that some private companies were generating electricity at Rs6 per unit.
Regarding DISCOs, he announced to bring efficiency to cut theft and losses.
Musadik said that the government had directed all public sector oil companies to establish a separate company for renewable energy to generate cheaper electricity and protect the environment.Pakistan Asserts U.S. Sanctions May Not Apply to IP Gas Pipeline Project
The minister said that the prime minister envisaged the uplift of rural and urban areas, and added that it had been decided to provide direct subsidies to the farmers on fertilizers.
He maintained provision of high-yielding seeds and solar tubewells to the farmers would be ensured to enhance the productivity of the agriculture sector.
He said loans would also be provided to establish farm industries to ensure maximum utilization of fruits and vegetables.
For the urban areas, he said that a plan had been developed to provide IT-related training to 500,000 and commercial banks would be directed to provide soft loans to the small and medium sector.
