ISLAMABAD - Prime Minister Yousuf Raza Gilani on Sunday announced the formation of a Government-Industry Energy Council (GIEC) with a mandate to prepare recommendations to address the energy crisis in the country. The Petroleum Institute of Pakistan would be a permanent member of the GIEC. While addressing inaugural session of a three-day 'Energy Conference organised by the Petroleum Institute of Pakistan, Gilani said that energy was an essential driver of the countrys economy. I look forward recommendations coming from these sessions, and urge the Petroleum Institute of Pakistan to deal with these recommendations through the Energy Council, the PM said of different sessions of the conference on related topics. To achieve accelerated GDP growth, the economy needs reliable, uninterrupted, and affordable supply of energy, the PM said, adding that Pakistan today is facing the overwhelming task of bridging its energy demand and supply gap that is likely to double in the next 15 years. I assure you that the government looks forward to the recommendations coming out of this conference and will work with you on the implementation of mutually acceptable agenda, the PM added. He said that challenges had caused financial constraints in the country and the government was however determined to face these challenges in the same way as done in the political arena. High economic growth, reduction in poverty levels and improvement in country-wide literacy remain important and achievable targets for this government. The government is taking the necessary steps in the short-term to reach these goals and in the long-term will strengthen the relevant institutes in the country to bring about sustainable change for the betterment of the people, the PM added. Gilani said that the share of natural gas as one of the primary energy source had increased from 40 percent in 1999 to 60 percent in 2010. We consumed our entire domestic natural gas production, providing for approximately 50 percent of our total energy requirements, he maintained. He admitted Pakistan was an energy-deficient country, meeting nearly 90 percent of its oil requirement through imports, and the government was also trying to move fast to start importing natural gas via LNG and regional pipelines in the near future to offset the growing gas deficit in the country. We are struggling to keep up with an increasing energy import bill on the one hand which has adversely affected our trade deficit, he said, adding that on the other hand it is difficult for the government to pass on the full impact of the rising international oil prices to the people. About development of local energy sources, including hydel projects and the Thar coal-fields, he said they all also remained a high priority for the government. This government has already added 1700 MW in the national electricity grid during last three years Gilani said, adding that simultaneously many more power projects are at various development stages. Fueling the Future therefore requires finding new oil and gas reserves through aggressive exploration activities, optimising production from existing fields by applying cutting-edge technology, enabling gas imports from across the borders via regional pipelines and LNG shipments. The government is encouraging foreign investments in energy infrastructure development and in a broader context, development of alternate sources of energy and energy conservation, for a sustainable energy supply, he said. He said that Energy Conference would have working sessions on very important subjects including oil and gas exploration and production, LNG imports, development of Thar coal-fields, power sector progress, oil infrastructure development and safety recommendations for the energy sector. Here, I would particularly acknowledge the efforts of the Petroleum Institute of Pakistan and its member companies for making this event possible, the PM said, adding that such a crucial international event being held in Pakistan by the Petroleum Institute of Pakistan clearly indicates the priority accorded to highlighting the countrys energy issues by the Petroleum Institute being the representative body of the most important public and private sector companies in the oil and gas sectors of the country. Prime Minister Syed Yousuf Raza Gilani said that the government had already given a subsidy of Rs 35 billion on the petroleum products and had no option but to raise their prices in view of global hike. Talking to reporters after inaugurating a three-day energy conference here, the Prime Minister said, The government can give subsidy, but the matter has to be discussed with the Finance Minister as the fuel prices have sharply increased the world over and the country has been facing serious economic challenges. Prime Minister Gilani said that the government would take all its allies and political parties into confidence while preparing the next years budget and try to incorporate their proposals. He said that the Pakistan Peoples Party government would continue to pursue the policy of reconciliation as it respected the mandate of all political parties and its leadership was sincere in resolving all issues. About his meetings with Pakistan Muslim League (N) leader Mian Mohammad Nawaz Sharif and Muttahida Qaumi Movement chief Altaf Hussain in London, the Prime Minister said that the political leadership was united and unanimous in facing grave economic and security challenges confronting the country. Regarding the issue of devolution of the Higher Education Commission (HEC), the Prime Minister said that the government had the ability to address all challenges as there was no wrong without a remedy. When asked that the parties that supported the 18th Amendment were also opposing the HECs devolution, the Prime Minister said that difference of opinion was part of democracy. He said the government had faced several challenges since it came into power, and had the ability to find a solution and address all such matters. About a statement made by former interior minister of Sindh Zulfiqar Mirza, Gilani said those were his personal views. To a question he said that of course the government would take all its allies and political parties into confidence on evolving some workable mechanism to deal with the petroleum prices. To a question about the closure of a private TV channel by PEMRA, PM Gilani said that as the matter was in the court of law so he could not comment on it.