A recent study from a think tank in Islamabad has pointed out that old and inefficient power plants are making Pakistan’s circular debt problem worse, according to a report in Dawn. Engineer Arshad Abbasi from the Centre for Research and Security Studies (CRSS) put together this report, highlighting the challenges facing Pakistan’s power sector. The report blames much of this on officials who have neglected the issue.
It’s called ‘Circular Debt Reduction Is Possible In a Single Click to Save Pakistan from Financial Catastrophe and Destabilisation,’ and it talks about how Pakistan’s energy sector is caught in a cycle of debt because of inefficient power plants that aren’t being used properly or retired when they should be.
The report talks about how Pakistan is paying a lot for these inefficient plants, like the Hubco Coal, Sahiwal Coal (HSR), and Port Qasim Coal power plants, even though they haven’t been working much in the last two years. This adds to Pakistan’s financial problems. The report also mentions governance problems in places like K-Electric and bad practices in both public and private power sectors. It asks if these practices are cheating Pakistan and its people.
The study stresses the need for big changes to fix these financial problems and make sure things are stable in the long term. It also mentions how Pakistan used to rely more on hydropower but now depends more on expensive imported fuels because big hydroelectric projects like the Kalabagh Dam haven’t been built due to political disagreements. The report says that these disagreements show the importance of making decisions together to protect Pakistan’s energy and economy.