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Tariff parity does not guarantee competitive parity.
8. Governance & Institutional Capacity
The constitutional excerpts on local government and governance reform indirectly point to execution capability. Export transformation requires:
- Fiscal discipline
- SOE restructuring
- Energy market rationalization
- Refund automation
- Provincial alignment with export strategy
Policy consistency is capital.
Credibility reduces risk premium.
Without it, even innovative firms struggle to scale.
9. The IPP Debate & Structural Economics
The IPP capacity payment model, particularly take-or-pay contracts indexed to USD returns, contributes to PKR burden under FX volatility. The debate requires technical audit, not populist labeling.
However, persistent structural distortions cannot coexist indefinitely with export ambition.
10. Synthesis: Distortion vs Transformation
The real debate is not:
Cheap energy vs innovation.
It is:
Remove structural distortion so innovation can scale.
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