The upcoming power projects indicate that we will have an excess of capacity for the next two decades. Reports of SIFC obtaining duty-free import permits seem wasteful, as imported Independent Power Producer (IPP) plants cannot operate without incurring capacity charges, all while not generating any electricity. This exacerbates the issue, which lies not in generation capacity, but in the failing distribution system that can only handle 23-24K, as well as imported fuels.
We are already grappling with an excess of electricity, and further capacity payments are not a viable solution. While the 1320MW Thar project still holds merit, borrowing for solar plants appears to be an ill-advised idea. It would be more prudent to make solar energy accessible to the general public, enabling them to meet their own energy needs.
Currency Crisis and Economic Slowdown
The heart of the crisis lies in the scarcity of foreign exchange reserves, resulting in curtailed imports and a de facto halt in the issuance of letters of credit (LCs) by the central bank. This, in turn, has dealt a severe blow to economic growth, pushing it to its lowest ebb.
Currency Markets React to Government Actions
Recent developments in the currency market have garnered attention. The notable decline in the dollar’s value, particularly in the open market, is attributed to the government’s crackdown on illegal currency exchanges and hundi/hawala networks. This move, especially in trade hubs like Peshawar and Quetta, has prompted the closure of numerous currency shops.
