Energy minister takes credit for ‘painful’ gas price hikes

ISLAMABAD: Outgoing caretaker Minister for Power and Petroleum Muhammad Ali on Tuesday identified recent “painful” gas pricing reforms among the best achievements despite difficulties to the consumers and conceded inability to negotiate debt relief from foreign independent power producers (IPPs) chiefly from China during over six-month stint. Speaking to journalists before leaving the office, he said the biggest challenge to energy prices emanated from the exchange rate and unless Pakistan stabilised it, the pricing of both gas and electricity would remain unaffordable to consumers, particularly the industrial sector. He conceded that the caretaker government could not provide relief to the consumers in terms of lower prices but its policy actions to tap gas supply from unconventional fields and improved cash flows of exploration and production companies and gas utilities would reduce import dependence and foreign exchange losses.