Tuesday, September 26th, 2017
Home »Fuel and Energy » Pakistan » PBIF hails government’s decision of gas distribution
The president of the Pakistan Businessmen and Intellectuals Forum (PBIF), Mian Zahid Hussain, has said that the government's decision to involve the private sector in distribution of gas will result in competition, reduced rates, and better practices as bulk consumers would not be bound to buy gas from a single entity.

Lauding the decision to unbundle gas utilities and involve the private sector in the distribution, he said that the move will prevent 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 because despite all efforts corruption and theft in this sector is increasing. Therefore disbanding them is in the best national interest.

The proposal has taken care of domestic consumers who will not be affected by the new arrangement because they will continue to receive locally-produced gas. The transmission charges will be fixed by the Oil and Gas Regulatory Authority, and this will minimize chances of exploitation, he said.

Mian Zahid Hussain said that all the pros and cons should be considered before the move is taken, because otherwise it will create more problems than it can resolve. There is only one terminal operational with 600 mmcfd capacity, and seven terminals will be built in Karachi with a combined capacity of 3,600 mmcfd in a few years. This will end the gas shortfall, he said. Construction of a new pipeline should be given preference as the installed pipelines cannot transport such a huge amount of gas, he warned.

the author