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Re: Electrical Crisis In Pakistan?!
By:shahalam
Date: Thursday, 10 June 2010, 6:46 am
In Response To: Electrical Crisis In Pakistan?! (K.I. Bajwa)

Unfortunately Pakistan does not have a proper financial formula to provide electricity for everyone. Unless this is resolved, the supply of electricity divided by demand for electricity will always be far less than one. The Market cost of generating power exceeds consumer revenue, hence government needs to subsidize the shortfall. Pakistan needs more electricity to meet the growing demand but is hindered by chronic financial constraints. Power price cannot be increased to match cost because vast population is low income consumer. For any government it’s not a popular choice. Therefore Pakistan’s electricity cannot be viable without subsidization.

Unlike China and India, Pakistan has not been able to attract foreign venture in power sector because of poor project prospects. Masses cannot pay the full price and any reliance on subsidy is not a practical option because of risk of IMF/World Bank dictates.

Buying electricity from China may be temporary respite but not a sustainable solution. The best course is to build indigenous capacities and manage the market as efficiently as it can. Another option is nuclear plants but that would need donors assent and technology from outside. India has been able to attract such investments from US but Pakistan is also trying to get it from China.

I wish Mr. Bajwa could offer some sensible suggestions in this regard rather than circulating his grumble to as many people as possible. After all who doesn’t know the electricity shortage in Pakistan? Even prime minister, chief ministers, ministers and high officials are also often without power for as long as eight hours. What needs to be conveyed beyond?

Messages In This Thread

Land Slide that changed Hunza.
Sidqi -- Wednesday, 9 June 2010, 5:53 pm
Electrical Crisis In Pakistan?!
K.I. Bajwa -- Wednesday, 9 June 2010, 8:05 pm
Re: Electrical Crisis In Pakistan?!
shahalam -- Thursday, 10 June 2010, 6:46 am