Miftah Ismail opposes power cut reduction

KARACHI: Former Finance Minister Miftah Ismail has opposed the idea of reducing loadshedding in Pakistan.

During an interview with the media, Ismail said that in a nation such as Pakistan, a brief one to two-hour power outage during the summer months has negligible impact.

He highlighted that the nation’s power demand surges to 30,000 to 31,000 megawatts (MW) during the scorching summer but plummets to as low as 12,000 MW in the winter.

“Independent Power Producers (IPPs) are faced with the necessity of covering capacity charges as a result of this substantial reduction in power demand during winter,” Ismail added.

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He said that there is a need to raise the cost of gas to boost electricity demand during the winter season as the country is currently not witnessing a substantial influx of capital or the establishment of new industries.

Meanwhile, Miftah Ismail cautioned against discontinuing the PKR5,000 banknote, suggesting that doing so could lead to adverse consequences, including potential depreciation and an increase in people purchasing US dollars.

He attributed the decline in the value of the dollar to growing business confidence in government measures, suggesting that curbing the smuggling of Iranian oil and diesel should also be prioritised.