Experts call for increased dependence on indigenous resources for energy – Business & Finance
LAHORE: As the country sought borrowing from the IMF, analysts called for the introduction of a long-term strategy to move towards the indigenization of resources for power generation, which is the backbone of any growing economy.
Economist Dr Noor Fatima said the current economic crisis will be brought under control if we manage to overcome the country’s deficit. In order to stop inflation in the country, we must stop imports immediately and neglect the energy situation in the country to help industries work efficiently, she said.
“It is high time for Pakistan to stop relying on expensive imported fuels to focus its interest on the indigenous resources of the country,” said Syed Saifullah Kazmi, a renowned financial expert, adding: “Pakistan needs to increase its share of coal, or other indigenous resources, in the production of electricity to have economic stability and long-term energy security.
This will also be in line with the policies of countries in the region, with China and India having announced their intention to increase their domestic coal production by a combined total of 700 million tonnes per year. It may be noted that in April, China announced that it would increase coal production by 300 million tons this year. Last month, India announced plans to boost domestic coal production by more than 400 million tonnes by the end of next year. By the end of next year, China will produce about 4.4 billion tons of coal a year and India will extract about 1.2 billion tons. India’s coal needs are expected to double by 2040.
Given the unprecedentedly high prices of imported fuel, the expansion of Thar coal could also bring enormous relief to Pakistan’s foreign exchange reserves with savings of around $2.5 billion, while leading to the reduction of more of 100 billion rupees of circular debt on an annual basis. base, analysts say.
Economist Dr. Mirza Ikhtiar Baig said that Pakistan will definitely come out of this economic crisis with the grace of Almighty Allah. The new government has taken bold decisions for a better future for Pakistan, he said, adding, “The government should also provide targeted subsidies to poor segments of society in addition to providing incentives to the agricultural sector to that we can export pulses, wheat, sugar. and other foodstuffs rather than importing these items.
In addition, the import of fuel oil for power generation should be discouraged and local resources should be used for power generation, including coal, thermal, hydroelectric and others, he said. .
Copyright Business Recorder, 2022