ISLAMABAD: Washington has reportedly expressed serious reservations to Islamabad with respect to latter's inordinately heavy reliance on external sources for resolution of its energy crisis. This was the major outcome of the follow-up meeting between the top officials of both the countries held here on Wednesday under the Strategic Dialogue started a few months ago between the two countries.

A three-week long strategic dialogue commenced in Islamabad on June 7, 2010 and is focusing on defence, science and technology, food security, energy security, economic and finance, water, market access, law enforcement and counter terrorism, social sector (women empowerment), communications and public transport and security, stability and non-proliferation.

Official sources told Business Recorder that the US delegation led by Assistant to the President and Senior Director for International Economics at the National Security Council David A. Lipton urged the Pakistani side headed by Minister for Water and Power Raja Pervez Ashraf and Finance Minister, Dr, Abdul Hafeez Sheikh, to increase power tariff for full cost recovery and reduce transmission losses.

Pakistani side, the sources said, expressed its inability to increase power tariff due to political considerations. The sources said, Secretary Water and Power, Shahid Rafi gave a presentation on reducing power supply gap and loadshedding in the near-term and review of Energy Summit and the Prime Minister's Energy Plan, prospects for limiting energy consumption and bringing more generation into the network in the short-term.

USAID- Afghanistan -Pakistan Task Force Director, James Bever provided an update on the implementation of re-powering, tube wells' efficiency and distribution of company performance. This includes plans for phase II and III to address gas and power shortfalls.

Managing Director, Pepco, Tahir Basharat Cheema, in his presentation gave an overall picture of restructuring of power sector to attain full cost recovery, options for raising tariffs, cost saving measures, phasing out subsidies and management of circular debt.

According to a joint US-Pakistan press statement issued after 4-5 hours deliberations and presentation, the US delegation met on June 16, 2010 in Islamabad to continue a partnership on energy issues focused on improving the lives of the Pakistan people. The meeting of the Energy Working Group (EWG) under the US - Pakistan Strategic Dialogue follows the October 2009 and March 2010 bilateral energy dialogue; discussions focused on short and medium term steps to address Pakistan's current energy shortfalls and the means to return the sector to a sustainable footing.

Pakistani delegation presented the government's steps to address the energy crisis, including the April 2010 Energy Summit and Prime Minister Gilani's Energy Plan. The US side appreciated Pakistan's efforts to address short-term energy shortfalls and pledged to assist in their implementation, the official statement claims.

It further stated that both sides also discussed energy sector solvency and measures to craft a climate attractive to private sector investment. The US delegation confirmed its intent to assist Pakistan in addressing the hardships experienced by Pakistanis due to energy shortfalls. They reviewed the progress in implementing the first phase of the US energy programme, including the rehabilitation of power facilities, tube well pump efficiency, and enhanced distribution company performance. The US side also discussed future plans to address Pakistan's medium and long-term energy needs.

"Energy independence required far more than the gimmicks and continued dependence on costly and imported resources," said Raja Pervez Ashraf. On Thursday, both sides will discuss avenues of co-operation development of water resources. Chairman Wapda, Shakeel Durrani and representatives of four provinces, Gilgit Baltistan and AJ&K will give presentations. BR