Daily Times

Minister for Planning, Development, and Special Initiatives, Professor Ahsan Iqbal, emphasized on Tuesday that the integrated energy model is crucial for meeting the country?s future energy needs through efficient, reliable, affordable, clean and renewable resources.

Speaking at the ‘National Workshop on Integrated Energy Plan’ organized by the Ministry of Planning, Development and Special Initiatives, the minister stressed the need to address the challenges faced by the common man, particularly the high electricity tariffs, by utilizing the integrated energy model.

He informed that the integrated energy model was developed to organize and optimize all energy resources to identify an affordable energy mix that can efficiently meet local energy requirements. He added that the unit had developed a leading framework, organized workshops and trained various ministries.

Ahsan Iqbal urged the Ministries of Energy and Petroleum to utilize this framework to overcome the issues plaguing the energy sector and to explore solutions and future mapping of resources for a sustainable energy mix.

The minister pointed out that the imbalance between energy demand and supply was another issue causing price fluctuations and capacity payments. He noted that electricity demand rises to 30,000 MW in the peak summer season and drops to 12,000 MW in winter. He suggested that a dynamic pricing formula is needed to switch from electricity to gas during the winter season, utilizing excess electricity to reduce pressure on gas supplies. This, he explained, would also help resolve capacity payment issues and payments to idle powerhouses. The Planning Minister recalled that when the Pakistan Muslim League resumed power in 2013, the country was facing terrorism, severe energy crisis and economic instability. The government decided to initiate energy sector projects under the China-Pakistan Economic Corridor (CPEC) by utilizing local resources.

Under CPEC, the first energy generation projects in collaboration with the Sindh government were started in Thar, producing affordable energy. He added that other projects, including hydel, nuclear, wind, and renewable energy projects, were also initiated to diversify the energy sector and reduce reliance on any single source.

The minister remarked that in 2018, the economy was progressing, the energy crisis was resolved, and terrorism was eliminated from the country. However, he lamented that the government then fell into incompetent hands, which negotiated with the IMF under tough conditions and later broke the agreements.

Ahsan Iqbal noted that the current government, in 2021, made difficult and unpopular decisions, sacrificing its vote bank to save the country from default. He added that due to 16 months of hard work, especially over the last 8 months, the economy was heading in the right direction, with inflation reduced to a single-digit 9% from 35%.

He highlighted that the stock market was performing well, reaching a record level, and that two renowned credit rating agencies had upgraded Pakistan’s economic rating.

The minister emphasized that stability and continuity are prerequisites for maintaining sustainability and progress, which are essential for putting the economy on a fast track toward economic development and social prosperity. He also praised the efforts of the workshop organizers, stating that it would help identify a reliable and affordable energy mix to eliminate the costly energy mix.