Pakistan’s Defence Minister Khawaja Asif said that the cabinet planned to conserve 30 per cent of the electricity used by government departments, which would save Rs 62 billion.
Pakistan government has announced early closure of wedding halls among measures to reduce energy wastage. (Photo: Reuters/Representational)
By India Today Web Desk: Cash-strapped Pakistan on Tuesday (January 3) announced early closure of markets, malls and wedding halls in order to save energy as the government is struggling to revive the economy. The decision is among the raft of measures under the energy conservation plan by the Pakistan government, reported PTI.
Pakistan cabinet ministers on Tuesday approved the National Energy Conservation Plan to save energy and decrease dependence on imported oil.
According to the Pakistan Defence Minister Khawaja Asif, “The markets and malls would now close at 8:30 pm while the wedding halls in Pakistan would close by 10:00 pm. The measure will save us Rs 60 billion.”
Some of the other measures taken by the country to deal with situation are stopping manufacturing of incandescent bulbs from February 1 while production of inefficient fans would be stopped from July. The Defence Minister said “these measures would help to save another Rs 22 billion.”
The government would also make the use of conical geysers mandatory within a year, which by using less gas would save Rs 92 billion, and alternative use of street lights would save another Rs 4 billion.
The minister further added that 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.
“No lights were on at the cabinet meeting today. The meeting was held in full sunlight,” he said, providing an example for the country to follow.
Plans to save 30% govt dept electricity
The Pak Defence Minister also said that the cabinet planned to conserve 30 per cent of the electricity used by government departments, which would save Rs 62 billion.
In order to cut the import of fuel, electric motorcycles would be introduced by the end of 2023, said the minister.
“The plan to save energy is being enforced immediately and the cabinet will monitor it,” he said.
Plan to tackle climate change issue too
Climate Change Minister Sherry Rehman who accompanied the defence minister at the press conference said the plan would also help to tackle the climate change issue.
“The world has been following this plan for a while and it is imperative for us to change our habits,” she said and asked businesses to cooperate.
The measures to save energy come a day after the National Security Committee agreed that the revival of the economy is essential for national security.
Pakistan grapples with economic crisis
Pakistan is grappling with an economic crisis. The country’s economic situation is facing “severe headwinds” with inflation being forecast to stay high between 21-23 per cent and the country’s fiscal deficit widening by more than 115 per cent in the first four months (July-October) of the current fiscal year.
Pakistan’s Ministry of Finance in its Monthly Economic Update and Outlook last week said that the economic growth is likely to remain below the budgeted target in FY23 due to devastation caused by floods.
Pakistan was hit by major floods in late August that killed more than 1,500 people and caused billions of dollars worth of damage, heaping even more pressure on its finances.
What are the concerns?
The biggest worries centre around Pakistan’s ability to pay for imports such as energy and food and to meet sovereign debt obligations abroad.
Before the floods hit, external financing needs for the 2022-23 financial year (July-June) were estimated at $33.5 billion, according the central bank.
The floods have changed projections. Exports are expected to slump and imports to grow to make up for essential commodities lost in the flooding of millions of hectares of farmland.
Saudi Arabia extends $3 billion deposit term to Pakistan
Saudi Arabia on Friday extended the term of a $3 billion deposit it made to Pakistan’s foreign reserves, state news agency SPA and Pakistan’s central bank said.
Saudi Arabia deposited the money in Pakistan’s central bank late last year as a loan to shore up the cash-strapped country’s reserves.
The central bank reserves stood at $7.5 billion as of Nov 25 this year. That covers imports for barely a month.
What are the options for Pakistan?
Immediate solutions include financing and compressing demand for imports, but needs are rising after the floods.
However, with investors demanding a 26 percentage point premium to hold Pakistan’s international bonds over safe-haven U.S. Treasuries, Pakistan is locked out of international capital markets.
There have been some indications the next IMF disbursement could be quicker and front-loaded to help Pakistan combat the floods, but the programme runs out mid-2023.
(with inputs from agencies)