(September 13, 2017)
President Pakistan Businessmen and Intellectuals Forum (PBIF), President All Karachi Industrial Alliance (AKIA), Senior Vice Chairman of the Businessmen Panel of FPCCI and Former Provincial Minister Mian Zahid Hussain on Wednesday lauded the decision of the Government to unbundle gas utilities and involve the private sector in the distribution.
The move will contain theft and enhance transparency which will result in new local and foreign investments in the energy sector to the tune of billions, he said.
Mian Zahid Hussain said that the provincial governments should cooperate with the federal government to create a new transmission company and four provincial distribution companies as despite all efforts corruption and theft in this sector is increasing therefore disbanding them is in the best of national interest.
The Business Leader said that decision to involve the private sector in the distribution of gas will result in competition, reduced rates, and best practices as bulk consumers would not be bound to buy gas from a single entity.
The proposal has taken care of the domestic consumers who will be not affected by the new arrangement as they would continue to get locally-produced gas.
The transmission charges will be fixed by the Ogra which will minimise chances of exploitation, he observed.
Mian Zahid Hussain said that all the pros and cons should be considered before the move otherwise it will create more problems than it resolving.
There is only one terminal operational with 600 mmcfd capacity while some seven terminal will be built in Karachi with a combined capacity of 3600 mmcfd in few years which will end the gas shortfall, he informed.
Construction of new pipeline should be given preference as the installed pipelines cannot transport such a huge amount of gas, he warned.
