Inefficient Power Sector can Bankrupt Pakistan

ISLAMABAD, July 16 (Online Int’l): Leader of the business community and former President ICCI Shahid Rasheed Butt on Thursday said that fundamental changes are needed in the power sector; otherwise it will bankrupt the country.

State-run power companies have become a liability while the experience of privatization has left much to be desired therefore establishment of microgrid stations on a cooperative basis should be considered, he said.

Shahid Rasheed Butt said that power production is beating demand, therefore, the under construction projects which will generate very costly electricity should be put on hold or slowed down.

He said that while the government is involved in negotiations with IPPs to reduce the cost of electricity, current production is well above demand while new projects are being completed rapidly, which is amazing.

Discos are rife with corruption, inefficiency, political interference and misdirected preferences but the government is neglecting reforms and they are allowed to have monopoly in the power market which is against the rights of consumers, he added.

The business leader said that the government should reconsider the plan to boost power production to 75 thousand megawatts by 2030 as there is little demand while the increased power generation will add to losses and circular debt which has already surpassed Rs2.25 trillion.

He said that consumers in Mumbai have the right to choose from three power providing companies, Singapore has six power companies creating a competitive environment while the electricity market has been monopolized in Pakistan providing an opportunity to the bureaucracy to exploit consumers.

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