Govt to exploit resources to meet energy requirements: Salman
By Asad Cheema

ISLAMABAD—Caretaker Minister for Finance Dr. Salman Shah Saturday said the government has initiated steps, besides inviting foreign companies, to exploit oil and gas resources in the country.
Talking to Newsmen, he said that these activities were imperative for the country as imported energy was very expensive which not only led to increase in budgetary deficit, but also had impact on the balance of payment. He said that exploring domestic resources especially hydal resources, was vital to tackle various problems facing the people.
After investing in these resources during the next five years, the government would not have to depend on imported energy from foreign countries, he said. The country was rich in resources like solar energy and hydropower which needs to be exploited, he added.
Dr Salman said IPI (India,Pakistan and Iran), project would be signed soon. He said that the price of petroleum has crossed the limit of $ 100 per barrel which has increased burden on the national budget. To a question about the subsidy on diesel, he said that the government was providing more subsidy for diesel than the petroleum. He said that the energy price index of the consumers was 15%, and in case of the increase in it, then there would be one to half per cent inflationary impact.
Meanwhile, Caretaker Federal Minister for Finance and Economic Affairs Salman Shah said Saturday that increase in prices of petroleum products was inevitable in view of unprecedented increase in prices at the international level.Addressing a press conference here, he said that adjustment in petroleum products prices has been made in consultation with political parties having majority in the parliament, and this will facilitate the next government. However, he said, more adjustments will have to be made in the prices during the coming months to minimise the impact of high oil rates in the international market on balance of payment.
To a question, he said, on average prices of electricity and petroleum products have been increased by a single digit i.e 9 percent, to ensure that its inflationary impact is minimum, which will be around 1 to 1.50 percent. About undue delay in raising the prices, he said it was not delayed to save the previous government from criticism, the decision in this regard was taken in view of various economic factors, adding that in India too the prices of petroleum products have been revised upwards after about 20 months.
He said the balance of payment was under pressure due to the higher oil prices, and the step will mitigate its impact, he added. When asked as to how much increase will have to be made in oil prices to offset the impact of its high rates in the international market, he said, “I cannot say as to how much raise will be required, but doing it in one go will not be advisable”.