Musharraf defends hike in gas, power tariff

KARACHI, March 25:
The chief executive, Gen Pervez Musharraf, has defended the upward revision of gas and power tariff, adding that the existing tariff is not high enough to attract investors.

Speaking at a press conference at the Governor House on Sunday, he said that as long as power theft continued the government would have no alternative but to increase tariff.

Admitting that an increase in fuel prices would have an impact on the price of all commodities, the chief executive said the country had burnt out its gas resources because of low domestic rates. He added that all over the world the domestic rates were higher than commercial and industrial rates.

When asked if the masses could endure the increase in gas and power tariff, the chief executive said tariff structure adjustment was not a popular decision but it was necessary in the national interest.

He said that when the army had been inducted into the Water and Power Development Authority its losses, including 15 per cent transmission and distribution losses, had been 42 per cent. The remaining losses, he said, had been due to power theft.

Talking about the Karachi Electric Supply Corporation, Gen Musharraf said that till July its losses had been 44 per cent. He added that the army had brought the losses down to 30 per cent.

When asked why the 1991 Water Accord had not been implemented by the Indus River System Authority completely, the chief executive said the government was abiding by the accord strictly and every province was getting its share. He conceded that like Kalabagh Dam the water accord was a contentious issue.


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