Pakistan pays Rs.1 trillion in energy subsidiesDecember 4th, 2011 - 12:50 pm ICT by IANS
Islamabad, Dec 4 (IANS) The largest burden on Pakistan’s economy is a payment of Rs.1 trillion for the subsidy and losses of state-run power entities in the last four years, said Finance Minister Abdul Hafeez Shaikh.
“This is a huge money,” Shaikh was quoted as saying by the Associated Press of Pakistan.
Speaking in Karachi on the national economy, Shaikh said this meant the government was providing electricity to consumers at a lower price than its cost.
The minister said inefficiency and corporate mis-governance were other reasons for incurring “colossal” losses.
He sought enhancement of the role of the private sector in state-run power sector organisations by encouraging public-private partnership to improve their performance and reduce losses.
The minister said the government has to improve corporate governance, devise an ideal fuel mix, improve tariff structure and speed up future power projects to resolve energy crisis in the country.
He said tax collection has improved in the country due to government efforts to tax rich people.
In the last five months of the current fiscal year, the revenue collection was higher by 28 percent to a record Rs.640 billion compared to the same period last year.
This was more than the target, he said.
Shaikh said the current revenue collection target was Rs.1,952 billion, which was higher by 25 percent over last year’s Rs.1,558 billion, up by 17 percent over 2009-10.
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Tags: collection target, corporate governance, current fiscal year, energy crisis, energy subsidies, finance minister, five months, fuel mix, future power, government efforts, hafeez, inefficiency, karachi, national economy, power entities, power projects, power sector, public private partnership, sector organisations, tariff structure