Connect with Zorays

Hi, what are you looking for?

Rental power plants

Governance

Accountability for Catastrophic Energy Policies: The Case Against IPPs

Image

This is why we have issues with IPPs. They are profiting significantly at the cost of our economic growth. We are buried in debt and burdened with high capacity payments because of the shortsighted energy policies from the past thirty years.

For reference, here is a good reading on how this mess began in 1994 and who is responsible. Illogical economic growth fueled by poorly planned energy projects has led to the current situation. The shortcomings of IPPs have now become the root cause of our problems, driving inflation and stifling economic growth.

Consequences

Unfortunately, several unforeseen consequences have emerged:

Advertisement. Scroll to continue reading.
https://www.lunaproxy.com
  • Escalating Energy Prices: With the devaluation of the local currency, the cost of energy pegged to the dollar has soared, directly impacting consumers.
  • Circular Debt: The mismatch between revenue from electricity sales and the cost of production, including dollar-pegged payments, has led to an unsustainable circular debt.
  • Capacity Payments: These payments, made to power producers regardless of actual electricity consumption, add a significant financial burden.

Accountability and Reform

All politicians, bureaucrats, and experts who were involved in making this catastrophic decision should face long jail terms and significant financial penalties. While accountability for past decisions is important, jailing promoters of these projects might not address the systemic issues. Instead, we should focus on:

  1. Renegotiating Agreements: Engaging with IPPs to renegotiate terms, focusing on more sustainable and mutually beneficial agreements.
  2. Diversifying Energy Mix: Prioritizing renewable energy sources to reduce dependence on imported fuels and dollar-pegged agreements.
  3. Policy Reforms: Implementing comprehensive energy policies that balance investor confidence with national economic stability.
  4. Strengthening Regulation: Enhancing regulatory frameworks to ensure transparency and fairness in future energy projects.
READ:   Pakistan Army Myths Regarding Military Service and Qualifications

Moving Forward

It was a flawed policy from the start because we lacked the foresight to invest heavily in hydropower, which, despite taking longer to develop, would have been a more sustainable solution compared to the quick-fix approach of IPPs.

Pages: 1 2 3

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Discovery

Standing almost 14 meters (45 ft) tall, it was commissioned by Francesco de Medici, the Grand Duke of Tuscany, in 1579. Positioned above a...

Armed Forces

Dr. Abdul Qadeer Khan, Pakistan’s first nuclear scientist and director of the Pakistan Atomic Energy Commission, developed the first heavy water testing and was...

Advertisement

Most Viewed Posts

  1. niche Niche And Event Blogging – Scaling Beyond 10 Lac & Making Money (24,489)
    What do you want to be known for? What could you teach? What can you influence? Or what do you want to influence? What is your area of expertise? What do you know that others in your industry don’t? Identifying your uniqueness and value is easier said than done. For those of you wondering how […]
  2. hope fore semis still alive Can Pakistan still qualify for the Worldcup 2023 semifinals? (15,666)
    Again resorting to ifs and buts, as usual. Certainly, Pakistan still has a chance to qualify for the semifinals. However, it's imperative that they win all the remaining matches decisively to secure their spot. The team must bring out their best performance to outshine their rivals in the upcoming games. Otherwise, to be honest, the […]
  3. Opening Batsman All Time Favourite Pakistani Opening Batsmen (12,283)
    My personal favorite had always been Imran Nazir and Saeed Anwar. Illustrious Career of Saeed Anwar Saeed Anwar is considered one of the greatest opening batsmen in the history of Pakistani cricket. He made his debut for Pakistan in 1989 and went on to have a long and illustrious career that lasted until 2003. Anwar […]
  4. punjabi song A list of The Punjabi Tribes (11,871)
    Jatts — Warrior and Farmer in one. Started getting comfortable with farming life around the sixteenth 100 years. Some Jatt families are: Waraich, Sandhu, Dhillon, Bajwa. Cheema and so forth. Some Bhatti, Chinna, Rai, Tiwana, and Uppal are viewed as Jatts. Punjabi Rajputs (Rajay, Ranay, Rai) — Took the Rajput titles, either because of the […]
  5. Arshad Sharif Journalist Fled Pakistan and Never Came Back (11,216)
    Reader discretion! Arsched Sharif on doubts of mistaken identity was killed with nine bullets by the Kenyan Police as his car breached a security checkpoint. Some say he was neutralized with a sniper by ISI. Whereas, he was compelled to leave UAE on state request and the only visa-free ticket he could avail was of […]
  6. syed asim munir ahmad shah [Confirmed] General Asim Munir Shah appointed as the New Army Chief of Pakistan (10,903)
    Shahbaz Sharif was in London for a reason. He has appointed General Asim Munir as COAS. Clearly, General Asim was my favorite candidate for the next Army Chief appointment. This announcement came just in time, as Lieutenant General Syed Asim Munir Ahmed Shah would have been retiring on 22nd November 2022, next to him is […]
  7. Tim Hortons Tim Hortons The Cheapest Coffee from Canada Now Being Served in Pakistan (9,983)
    Lahoris and Tim Hortons Pakistan made history by setting a new global record for the highest opening day sales in the brand's history since 1964. With over 5,352 restaurants across 15 countries, Tim Hortons has established itself as a household name and a go-to destination for coffee and baked goods. This latest achievement is a […]