By Staff reporter
ISLAMABAD: The coalition government of Prime Minister Shehbaz Sharif on Tuesday decided to ban wedding functions after 10 pm and shut markets across the country at 8.30 pm as part of a raft of measures under the energy conservation plan to save costs amid an ongoing economic crisis.
Defence minister Khawaja Asif told a news conference that the planned measures would save the cash-strapped country about Rs62 billion.
“The Cabinet, on the recommendation of the power division, has allowed enforcing the energy-saving plan which will be applied to the entire country,” the minister said. “Some market representatives had pushed for longer hours, but the government decided that earlier closure was needed.”
Asif also said Prime Minister Sharif had ordered all government departments to reduce electricity consumption by 30 percent, which would save Rs62 billion.
The government will also halt production of electricity-powered fans and increase import duties on ‘inefficient’ fans, and will ban the manufacturing of 120-130 watt fans within the country starting on July 1. Manufacturing of incandescent bulbs would be stopped from February 1.
The government would also make the use of conical geysers mandatory within a year, which by using less gas would save Rs92 billion, and alternative use of street lights would save another Rs4 billion, the minister said.
Asif said all government buildings and offices would also reduce use of energy under the plan and a policy to work from home would also be completed in up to 10 days. “All government institutions will also be required to install efficient devices to save electricity.”
The minister said the Cabinet meeting, which approved the plan, was held without the use of any electricity. “No lights were on in the cabinet meeting today. The meeting was held in full sunlight, providing an example for the country to follow.”
In another step, the minister said electric motorcycles would be introduced by the end of this year to help cut the import of fuel. “The plan to save energy is being enforced immediately and the cabinet will monitor it.”
“The country is passing through a critical situation,” Defense Minister Asif said. “The nation cannot afford to sustain the current levels of power consumption.”
He added that Pakistan’s peak summer electricity usage was 29,000 megawatts (MW) compared with 12,000 MW in the winter, mainly due to the use of fans in hotter months.
The minister said the plan will be implemented in consultation with provincial governments. The government estimates the austerity steps will reduce power demand by about 9,000 megawatts per day or about half of the current consumption.
The country is struggling to pay for its oil imports and to meet energy demand as its foreign exchange reserves have dwindled to about $5.9 billion, equivalent to just over one month of imports.
Pakistan’s economic crisis deepened after the International Monetary Fund delayed its latest loan installments amid disputes over tax targets and mounting power sector debt.
Power sector payment arrears, or circular debt ballooned to 2.4 trillion rupees.
Independent power producers, refinery and oil marketing companies are angry with late government payments and have warned they face a financial crisis, while economists fear rising circular debt will further widen the country’s yawning fiscal deficit, a key part of ongoing bailout talks with the IMF.
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