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.
