Raised tariffs can solve PakistanÂ’s power crisis

Talking to the reporters at Foreign Press Center, David Goldwyn said Pakistan has a very solid plan to overcome the electricity crisis and it will be able to generate additional 2,500 megawatts of electricity by December this year and another additional 2,600 megawatts of energy by June next year provided the power rates are increased by 12% in January and another 6% by April next year as agreed with IMF.

David Goldwyn said that the biggest problem of Pakistan was the low power rates. He said by increasing the power tariffs by next April, Pakistan is expected to have cost recoverable tariff which would eventually give incentive to the foreign investors in the power sector.

He said Asian Development Bank was negotiating with Pakistan to bring in investment of (US)$3 billion, out of which (US)$1.6 billion will be spent for dam extensions and to improve and put new transmission lines.

He said Pakistani government has the political commitment to raise the tariff to end the subsidy in the power sector. Once the subsidy is gone, you will see lot of power generation in Pakistan because there was great potential of investment in this sector, he added.

To a question about the provision of nuclear energy to Pakistan as was being provided to India, David Goldwyn said that he was engaged in hectic dialogue with Pakistani officials in Islamabad during the time when Secretary Clinton was there and the whole range of issues were discussed relating to energy policy of Pakistan but none of the Pakistani official raised the issue of acquiring nuclear energy for Pakistan that is why he could not answer this question.