I am a great fan of Dawn
newspaper and Khaleeq Kiani. The story published on Monday Pakistan's
fuel reserves fall below strategic levels highlights a few points. These
include: 1) Prime Minister and Ministers don’t have time to focus on strategic
issues of national importance, 2) they are also devoid of acumen required for
strategic planning and 3) bureaucracy, picked up by politicians also tows the
lines of their big bosses.
Knowing Khaleeq, I
will not mince my words and say without hesitation that this story should have
appeared much earlier. International price of crude oil took a nosedive in 2014
and since then has been hovering around less than USD50 per barrel. This
provided an excellent opportunity to Pakistan to 1) construct additional
storage facilities and 2) build strategic reserves. However, the policy
planners and decision makers failed on both the fronts miserably.
Some time back I had
posted a blog that a few refineries were busy in creating facilities to add
their production and broaden product mix. Lately, I also posted a blog
highlighting acute shortage of HOBC. Even at that time I was fully convinced
that refineries were operating below optimum capacity utilization and country’s
dependence on imported white oil products were on the rise.
This reminds me that
at one stage three new refineries were on cards but even PARCO deferred it
Khalifa point refinery. This clearly showed ‘confidence deficit’ and I could
not resist from saying that if local investors are shy the country should not
expect foreign investment.
Please allow me to
say that the worst hindrance in establishing of energy and power generation
companies in Pakistan is ‘circular debt’. Following policies of international
donors blindly has put the cart before the horse. Added to this is failure of
the government to contain blatant pilferage of electrify and gas. The menace
prevails due to the absence of political will and inefficient regulatory and
legal framework.
The incumbent
government, since coming into power has been issuing new/revised deadlines for
getting rid of load shedding, I often fear that it is hoping against the hopes.
The reason is simple, unless the government makes required structural changes, stopping
pilferage is almost impossible. Besides this, the government has to prove by
act that is serious in overcoming pilferage and recovery of outstanding dues.
Else be ready to face even the worst conditions.
