Summary Subsidy given on power was decreased by Rs 17 billion in 2015
ISLAMABAD (Dunya News) – Annual report issued by the State Bank of Pakistan (SBP) has exposed the truth behind government’s vows to curb energy crisis and efforts to boost production.
The report states that electricity production increased by only 1.6 percent in 2015 while subsidy was decreased by a total of Rs 17 billion.
Power demand increased by 4.5 percent in 2015 whereas production saw a paltry rise of 1.6 percent. Production cost of electricity maintained at Rs 6.8 per unit after cut from the previous Rs 8.2 per unit.
In addition to negligible production against increased demand, people-favouring subsidy was also lessened. In 2014, subsidy given by the government was Rs 309 billion while that in 2015 stood at Rs 292 billion.
Current circular debt pertaining to energy sector includes Rs 335 billion of 2013.
Power generation using furnace oil was decreased in 2015 from 38.5 percent to 33.2 percent. The hydel power production stood at 32.8 percent.
The report mentions that Balochistan and Sindh reservoirs contributed 87 percent to the country’s gas. At least 79 percent of the gas drilled from Sindh was provided to industries and power houses.
The distribution further mentions that 31 percent of gas was given to domestic customers in Punjab while 45 percent to the province’s industries. The report of the primary bank shows that gas production decreased by Rs 12 crore cubic feet per day in 2015.
To compare with, the State Bank of Pakistan has stated that the production was 14 trillion cubic feet annual in 2014 while in 2013 it was 14 trillion cubic feet.
On the positive side, the bank states that Pakistan topped the regional countries in providing relief to the people on petrol.
