Pakistan announces policy to ease energy crisis

ISLAMABAD - Pakistan’s government Thursday announced measures to ease energy crisis that is fomenting public anger and threatening wider unrest.

The measures include temporary expansions of weekends for government employees, early closures of markets and a 50-per-cent cut in power usage at government offices.

Announcing the steps, Prime Minister Yousuf Raza Gilani and Minister for Water and Power Raja Parvez Ashraf said the main reason for the energy crisis is the increase in power demand in recent years and the previous government’s failure to boost power output.

“We inherited this problem,” Gilani told reporters, vowing to do everything to solve the problem.

He said the government of former military ruler Pervez Musharraf did little to make fresh investment in the power sector, find additional energy resources or improve a faulty distribution infrastructure.

The shortfall of around 5,000 megawatt has resulted in power cuts lasting as long as 20 hours in some rural areas and a crippled economy.

Several cities have seen increasing numbers of protests - rioting in some cases - in recent weeks.

Gilani said the government was releasing 116 billion rupees (around $1.4 billion) to pay debts to various private power producers. Many of these companies had stopped production due to non-payment.

The government also decided to disconnect electricity to commercial billboards and neon signs, and switch off 50 percent of street lights.

Night-long wedding parties have been restricted to three hours and power supply to agricultural water pumps will be cut during from 7 p.m. to 11 p.m. - the peak hours of electricity demand.

The measures will conserve around 500 megawatt, while an additional 400 to 600mw will be generated by independent power plants nearing completion.

Five rental power plants that are in the process of installation will add another 605 megawatt, Ashraf said.

The business community rejected the government plan, saying it will further cripple the ailing economy.

“The country’s exports may drop by 2.5 billion dollars,” said Abdul Majeed, president of the Karachi Chamber of Commerce and Industry.