ISLAMABAD: The government has decided to form a commission to probe the handling of Pakistan’s fuel and power sectors by the previous administration of ousted prime minister Imran Khan, as it blames the current energy crisis in the country on some of the decisions taken in the last four years.
The announcement to establish the commission was made by Shahid Khaqan Abbasi, a senior member of the ruling Pakistan Muslim League-Nawaz (PML-N) party, during a joint press conference with federal minister for planning and development Ahsan Iqbal.
Pakistan has been witnessing frequent and prolonged power outages amid a rising domestic demand for electricity and as hiked fuel prices in the international market have made low-cost power generation difficult for the country.
Pakistan has slashed fuel subsidies for a third time in a month in a bid to control the fiscal deficit and secure International Monetary Fund (IMF) bailout money.
Ousted Prime Minister Imran Khan had given the subsidy in his last days in power to cool down public sentiment in the face of double-digit inflation, a move the IMF said deviated from the terms of the 2019 deal.
“The prime minister [Shehbaz Sharif] has decided to form a commission that will objectively look into the losses incurred in the fuel and power sectors in the last four years and present a report to the people of Pakistan so they become aware of these developments and understand why electricity and gas have become more expensive in the country and who are the individuals responsible for it,” Abbasi said.
“It has also been decided that the commission’s proceedings will be open to the media and the public,” he added.
The PML-N leader said the previous government had “destroyed” the energy sector of the country.
He also said its policies had led to the depletion of Pakistan’s foreign currency reserves, added to its circular debt and increased economic woes.
The planning minister blamed Khan and his cabinet members for not making long term fuel procurement contracts on cheaper rates in time.
Pakistan's monthly fuel oil imports are set to hit a four-year high in June, latest Refinitiv data shows, as the country struggles to buy liquefied natural gas (LNG) for power generation amid a heatwave that is driving demand.
Pakistan had cut fuel oil imports since the second half of 2018 as LNG prices were low, but it had to at times switch back to oil since July 2021 because of sky-high LNG prices.
The country's fuel oil imports could climb to about 700,000 tonnes this month, after hitting 630,000 tonnes in May, according to Refinitiv estimates. Imports last peaked at 680,000 tonnes in May 2018 and 741,000 tonnes in June 2017.