Govt decision to barter wheat for electricity with Iran lauded
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Iran wheat deal shows strength of Pakistan agri sector
The Pakistan Economy Watch (PEW) on Thursday lauded to move of the government to barter wheat for electricity with Iran.
Export of 100,000 tonnes of wheat to Iran to settle dues for electricity supplied to Pakistan’s energy-starved border areas was a step in the right direction, it said.
The development proves the importance and strencth of our agriculture sector which must be supported at policy level, said Dr Murtaza Mughal, President PEW.
Farming has not only been the main sector for growth and largest job provider, but it remains one of those few sectors which are performing well therefore it merits careful handling, he added.
Dr Murtaza Mughal said that some elements have launched a campaign telling masses that 5,500 MW power can be generated if gas supply is stopped to the fertilizer and CNG sectors.
The CNG sector has hardly been consuming six per cent of the total gas output while the fertiliser sector has been consuming 600 mmcfd gas against the allocated quota of 818 mmcfd and the IPPs are using 20 per cent of the gas output.
Dr Murtaza Mughal said that most of the gas being used by the fertiliser sector comes from Mari gasfiled which is unfit for domestic consumption or power production.
Country will have to spend around Rs 452 billion on urea import if seven fertilizer plants with annual production of 6.9 million tonnes are disconnected, he said adding that such a decision will destroy agriculture sector, trigger food insecurity and spark unprecedented inflation.
Dr Murtaza Mughal said that the real cuplrits are influential owners of the inefficient captive power plants who have been wasting gas worth Rs70 billion per annum for personal benefits.
Such is their influence that they get 450 mmcfd natural gas daily at 91 per cent discounted rates as compare to furnace oil and the primitive plants waste around 326 mmcfd of precious gas, he informed.
