LAHORE: Experts in Pakistan’s power sector are calling for urgent transparency and accountability by enforcing the recommendations of the 2020 Report on Independent Power Producers (IPPs). This report, released in March 2020, exposed significant irregularities, including excess payments of over Rs 100 billion to IPPs. Despite recommendations for a forensic audit and recovery of these excess payments, no substantial actions have been taken.
The 288-page report, prepared by the committee for power sector audit, circular debt resolution, and future roadmap, outlined severe issues plaguing the sector, but its recommendations remain largely ignored. This inaction has sparked concerns over regulatory capture, where powerful elites are accused of prioritizing profit over public interest, leaving Pakistan’s citizens to bear the brunt of inefficient and costly electricity services.
Power sector circles emphasize that the legacy of ill-conceived policies, particularly the 1994 World Bank-crafted policy, continues to undermine the sector, leading to a crisis marked by Rs 2.1 trillion in capacity payments this year and Rs 5.422 trillion in circular debt. They argue that the government’s focus on protecting lifeline consumers is praiseworthy, but the vast gap between costs and recoveries exacerbates the subsidy burden, further straining the economy.
Calls for reform stress the need to reduce circular debt, rectify flawed policies, and ensure affordable electricity for all. The experts warn that the nation’s economic future hinges on breaking this cycle of failure and prioritizing the needs of the public over those of the elite.
Story by Hamid Waleed
