pakistan: Pakistan opposition lashes out at Imran Khan govt over piling up of loans, energy crisis – Times of India

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ISLAMABAD: Pakistan opposition has slammed Imran Khan-led government over piling up of massive loans, unprecedented devaluation of rupee and deepening energy crisis in the country.
The News International reported that Senator Sherry has said that the Pakistan government continues to maintain its indefensible position on mismanagement of the gas sector and its iniquitous distribution in the country, yet shows us no plan for overcoming the crisis as a harsh winter looms ahead.
“None has answered the basic question as to why the government could not manage the purchase of LNG in the summer at 1/3 the rates. The price of gas today is also naturally related to the LNG fiasco and its shortage. Currently, Pakistan is facing an estimated shortfall of 2,200mmcfd while the prices have become unaffordable for people,” she said, reported Pakistani newspaper.
Senator Sherry noted that the rupee has dropped to a historic low of Rs 176 against the USD. The government doesn’t seem to have a plan to tackle this crisis as it has taken an ad hoc approach that has led the power sector into terrible paralysis.
“The government purchased LNG cargoes at the historic high price of $30.6 per million British thermal units (mmbtu) now when it was being sold at $13 per mmbtu in the summer. They did not purchase or book cargoes when all other countries were doing it in the summer at much lower rates. Even in October, they purchased LNG cargoes at a record price of $20.29 per mmbtu,” she said.
Pakistan is on the verge of a massive shortage of gas and rationing due to depleting local gas reserves and the failure of the Imran Khan government to procure a sufficient quantity of LNG.
On November 1, energy minister Hammad Azhar had informed that the government has arranged 11 LNG cargoes for the month of November, The News International reported.
LNG trading companies have backed out of an agreement made with PLL to provide two cargoes for November for mammoth monetary gains of up to 200 per cent profit in the international spot market, according to the publication.
Pakistan’s cost of energy production has increased following an increase in fuel prices.Almost two-thirds of the country’s electricity generation is based on fossil fuels, as per The Tribune.
The rise in crude oil prices have hit the highest in the last three years – USD 86 per barrel, the newspaper reported. The energy crisis is worsening due to the rising cost of the LNG.

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