ISLAMABAD - Federal Minister for Power Division Awais Leghari has said that the government is working on minimising the role of Discos in tax collection. The minister said that the government has stopped the Central Power Purchasing Agency (CPPA) from entering direct power purchase contracts and this would be replaced with competitive power procurement system.
Federal Minister for Power Division, Awais Leghari expressed these views during 7th edition of Leaders in Islamabad Business Summit (LIIBS). The 7th Edition of LIIBS was jointly hosted by Nutshell Group and Unity Foods Limited. While chairing session on energy, Awais Leghari said that the power sector in Pakistan is facing numerous challenges, it is unfeasible to hinder growth because certain items require subsidies to cater to all socioeconomic classes.
The government must demonstrate the courage to embrace its social responsibility while fostering industrial growth. This needs to find a balance between supporting industry development and ensuring essential items remain affordable for all segments of society. The government is also working on regional incentive packages to increase electricity consumption, he informed.
The minister said that the institutional restructuring of National Transmission & Despatch Company (NTDC) is in final stage, where its role changed to power system operator as owing to its inefficiencies and mishandling numerous projects were delayed for years, which has resulted huge losses to the nation, the minister said.
Leghari said that the government is also working on pre-privatisation initiatives for policy and regulatory framework and minimizing the role of Discos in tax collection as tax collection is the job of FBR. The government has no craving to run the affairs of Discos and instead would handover it to competent, efficient and independent boards of directors, he added. Leghari said that the government has started process for converting imported coal based power plants to local coal to contain foreign exchange loss. Similarly, he informed that discussions are underway on weighted average cost of gas with all stakeholders.
Federal Minister for Planning, Ahsan Iqbal said that Pakistan is poised to achieve a $3 trillion economy by 2047, bolstered by a targeted growth rate of 9%. Minister Ahsan Iqbal emphasized the current opportune moment for international investments in Pakistan, highlighting significant commitments from China and Saudi Arabia. Leveraging productivity enhancements, Pakistan aims to establish itself as an attractive destination for global industries, fostering its position in the international market.
Minister Ahsan Iqbal called attention to the urgent need to enhance the investment landscape, citing the SIFC as a promising platform for promoting Pakistan’s attractiveness as a business-friendly destination. He emphasized the importance of establishing a robust global business identity for Pakistan, drawing parallels with the successful initiatives seen during the early stages of the China-Pakistan Economic Corridor (CPEC). Minister Ahsan Iqbal reaffirmed Pakistan’s potential to achieve significant economic milestones, projecting a trajectory towards a $2 trillion economy by 2047 with a growth rate of 7%, and ultimately, a $3 trillion economy with a growth rate of 9pc.