PM forms task force to fix power sector

ISLAMABAD/LAHORE: Prime Minister Shehbaz Sharif Sunday constituted an eight-member task force to identify and oversee the implementation of structural reforms in the power sector, and also sought recommendations of measures to reduce capacity payments, including but not limited to shutting down certain plants.

The purpose behind the constitution of the task force is to reduce the financial burden on the power sector being borne by the government, and to enable the establishment of an efficient, liquid and self-sustaining competitive power market, says a press release issued by the Prime Minister’s Office (PMO).

The task force comprises Federal Minister for Power Sardar Awais Khan Leghari as chairman, Special Assistant to the Prime Minister on Power Muhammad Ali as co-chairman, Lt Gen Muhammad Zafar Iqbal as national coordinator, and BPS-21 officer from the Secretariat Group Syed Zakaria Ali Shah, and one nominee each from the Nepra, Central Power Purchasing Agency, Private Power and Infrastructure Board and Securities and Exchange Commission of Pakistan as members.

The ToRs of the task force are recommending measures for making the power sector financially and operationally sustainable, overseeing the development of an efficient and liquid power market design along with its implementation, recommending utilization of excess capacity by the industries/SEZs for stimulating growth, reviewing and recommending measures to reduce capacity payments, including but not limited to shutting down certain plants and taking any other necessary measures as deemed appropriate, reviewing matters pertaining to the set-up cost of various IPPs in the country and identifying malpractices, procedural weaknesses and regulatory gaps with a view to recommending the way forward to rectify them, reviewing compliance of the IPPs with parameters/terms and conditions of various agreements signed with the relevant government agencies/institutions, and recommending measures to resolve the issue of circular debt stock in the energy sector.

The role of the task force shall not be restricted to fact finding and shall be responsible for overseeing the implementation of its recommendations.

The task force shall be given full support, including requisite budget allocation, by the government.

The task force will submit its recommendations along with the implementation plan to the prime minister within one month for consideration.

Special secretary for the Power Division will head the secretariat of the task force. The task force will maintain effective coordination and consultation with the Ministry of Energy.

Meanwhile, Prime Minister Shehbaz Sharif Sunday urged all stakeholders to rise above politics and work together on national development projects like the China Pakistan Economic Corridor (CPEC).

Speaking to a seven-member delegation of journalists here, Shehbaz said work was progressing fast on the second phase of China Pakistan Economic Corridor (CPEC) and there was a positive momentum on further promotion of cooperation with China in different fields during the visit of Chinese experts to Pakistan.

The journalists’ delegation returned from an official visit to China undertaken at the invitation of state-owned China Public Diplomacy Association.

Shehbaz said China was a sincere friend who helped Pakistan on every difficult occasion.

The premier said whenever Allah Almighty gave him an opportunity to serve the country, he pledged to himself to focus all his energies on progress of the country.

Shehbaz said he was thankful to the Chinese leadership and people on the exemplary hospitality shown during his recent visit to China.

Meanwhile, chairing a review meeting on the FBR’s Track and Trace System, Shehbaz set a target for his economic team to speed up the process of transformation of the Federal Board of Revenue (FBR).

The FBR’s total digitization and restructuring as per the modern standards is part of the transformation plan.

Shehbaz delegated the responsibility to the minister of state for finance to oversee the transformation project.

A detailed report was presented on the track and trace system and digitization progress.

He directed immediate action against the persons responsible for deficiency and irregularities regarding the track and trace system.

The prime minister said that the FBR reforms were necessary to improve the tax system adding, “We will work day and night to save every penny of the poor people of Pakistan.”

Shehbaz said the FBR digitization was the main priority of the government and no disruption was acceptable in this regard.

Federal ministers Muhammad Aurangzeb, Ahad Khan Cheema, Minister of State Ali Pervaiz Malik, Coordinator of Prime Minister Ihsan Afzal and high-level officials attended the meeting.