Sunday, February 25, 2024

Pakistan Energy Crisis is definitely a Hoax

Loadshedding It has been proved from recent events that, current prevailing energy crisis in Pakistan is a fake one. It has been created artificially. Now the question rises, who has created it, the answer is more simple than the question itself. It has been created by corrupt government of Pakistan, in order to please their foreign lords (who are these foreign lords, well, it is a topic of another discussion); the purpose is to destabilize Pakistan’s economy, so that more broader vicious benefits can be achieved. If the country be destabilizes from within and everyone will be blaming others, interior problems will consuming the remaining resources, the common man will not be able to assess what is going on, even the sincere administrations will be so busy is solving the internal problems that they will not be able to maintain focus on fact, therefore the whole system will collapse. — Well, at least, that’s what ‘they’ think, but this will not happen exactly.

At present, Pakistan is solely relying on most expensive means of energy generation, one of which is generating energy from Oil. In past five years, the end user electricity cost has been raised from Rs. 1.5 per unit to Rs. 4.95 per unit (Minimum consumption limit). This is all because we are generating a huge volume of electricity from Oil, which is already touching sky all around the world. The situation will get worst in coming years, because current corrupt PPP government has taken absolutely no step to make things better for future, and they are insisting on relying on expensive options. Whereas, we can generate a huge volume electricity from water based power plants, with cost as low as Rs. 0.22 per unit.

Loadshedding Pathetically now the corrupt government is taking a step ahead, a worst step ever indeed; now they are literally blackmailing and threatening the oil companies in Pakistan, so that the oil companies as well as the power plants running on oil may reach to bankruptcy. The State’s oil giant Pakistan State Oil (PSO) is facing huge deficits that they are unable to coup up with the situation.

PSO is under huge trouble these days as the Pak-Arab Refinery Company (PARCO), a joint venture company between Pakistan and Abu Dhabi with 60% and 40% shares respectively has warned PSO to stop its fuel supply unless it starts making payments in advance. PARCO doubts that PSO will not be able to honor its words, therefore reduce oil supply to put pressure, but this is nothing new for PSO.

PSO was also sued by ICC Chemical in US courts, alleging that PSO has caused losses to it by breaching a contract for import of Base Oil (a finished petroleum lubricant stock that when blended with other materials i.e. additives, produces special purpose products such as engine oils).

According to a local newspaper, the management at PSO discussed a new mechanism in one of their recent meeting, which will ensure cash payment for fuel supply. Therefore, PSO will have to make advance payments to get oil deliveries. For first time in history of Pakistan default on its sovereign debt is holding Rs. 202 Billion of PSO.

According to Petroleum Ministry, PSO is supplying fuel worth over Rs. 32 billion monthly to the power sector, while the sector is paying back only around Rs. 15 to 16 billion per month, due to which PSO’s outstanding are continuously increasing. PSO recently requested the government to provide Rs. 50 Billion so it could pay international fuel suppliers. PSO is also facing huge obstacles to receive payment from its customers, all over Pakistan. A list of some of the PSO defaulters are as below:

1- Pakistan International Airline (PIA), payable amount: Rs. 344 Crore
2- Oil and Gas Development Company Limited (OGDCL), payable amount: Rs. 28 Crore
3- Karachi Electric Supply Company (KESC), payable amount: Rs. 700 Crore
4- National Logistic Cell (NLC), payable amount: Rs. 50 Crore
5- Pakistan Railways (PR), payable amount: Rs. 133 Crore

In result to all these defaulters, PSO has to payback Rs. 2,665 Crore to Pak Arab Refinery Limited (PARCO), Rs. 1,445 Crore to Pakistan Refinery Limited (PRL), Rs. 936 Crore to National Refinery Limited (NRL), Rs. 2,811 Crore to Attock Refinery, Rs. 260 Crore to Bosicor and Rs. 115 Crore to other refineries and suppliers.

This is all happening to the most expensive method of energy generation, by this example, one can easily judge, how evilly they are doing for other options, making them impossible to happen.

Our neighbor country India, has astonished the world by showing their progress and development in energy sector. Three years ago, Indian government started a Solar Energy project. They started it from 347 Mega Watts, and now after three years, they have reached up to 1400 Mega Watts successful and continuous input into the current system. This is more than awesome. Investors from all around the world are jumping into India for investing into energy sector. Indian government has setup a target to generate 20,000 Mega Watts of electricity totally from Solar Energy, by the end of 2020.

Ironically, in year 1999, Pakistan was suppose to export electricity to India, and now after 12 years, we are looking forward to buy from India, but the Economical Analysts are suggesting that, this will raise the end user cost up to Rs. 19.50 per unit, which is definitely unacceptable.

Time has come to accept that, our government is doing proudly nothing to facilitate the people of Pakistan, infact they are deliberately making the situations worst.


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Category: Socio Political

Comments (2)

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  1. Shahid Aslam says:

    Nothing can be done except going back to Stone Age. This is the fate of all corrupt nations and they got it.

    • hunain says:

      Actually, it is not correct that nothing can be done. One can bring change into what is in his reach and educate others to make their contributions. Together we can bring the change. First let’s get rid of these old, useless and vicious politicians.

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