Govt was generating electricity at Rs.59 per unit in June: Miftah Ismail
LAHORE
The Finance Minister Miftah Ismail could not hold his tears while talking about the devastations caused by heavy rainfall and floods in the country. The floods have caused over $18 billion damages, he said in the presses.
Addressing a press conference on Saturday the Finance Minister said that Pakistan staring in the face of a default when the PML-N government took charge. But, rather than running away like the PTI government, they took the challenge heads on, he added.
Miftah said that Pakistan needs at least 10 cities like Sialkot to increase its exports and curb the trade deficit. The circular debt has been increasing since 2010, there is a circular debt of Rs2500 billion on electric authorities while Rs1500 billion on Gas companies, he added.
The Finance Minister admitted that electricity bills have skyrocketed but they are selling units cheaper than Germany and France. Per unit cost of electricity in the country was Rs69, and the demand of electricity rises by 1000 MW with 1 degree rise in temperature, he added.
He said that 10 percent of total electricity is lost in line losses as bill collection from Punjab is 80%. The government has given a subsidy of Rs660 billion on Petrol and diesel, he added.
Miftah said that their government just abolished subsidies on petroleum products, the previous government was selling Rs80 cheaper diesel than
its buying price, he added.
The PML-N leader said that they were compelled to import $3.7 billion oil in June. Right now, there is only Rs7 tax on diesel and Rs38 on petroleum, he added.
He said that he imposed a 10% tax on Prime Minister Shehbaz Sharif’s sons sugar mills and did not permit opening of LC for his sons company.
Meanwhile, Addressing the industrialists at the Lahore Chamber of Commerce, Miftah admitted that the government was generating Rs 59 per unit of electricity in June.
He said that the country is moving towards improvement, adding that the incumbent government has doubled the power generating capacity. Previously, there was a capacity to generate 12 thousand megawatts of electricity, and the circular rate of electricity is 2500 billion rupees. The circular rate of gas is 1500 billion rupees. The government of Pakistan was generating electricity at Rs59 per unit in June.
“Currently the country is facing many problems, adding that the world does not give you loans anymore, it does not even want to give, the price of furnace oil and coal has increased by a record, due to the increase in the price of furnace oil and coal, the price of electricity has increased. Since 2010, revolving loans have been ongoing, he added.
Mifath added that many people said that the government should not take over, adding that they thought that the IMF would not cooperate if a caretaker government came in.
