Nishant Yadav
According to the Economic Survey (2023-24), Pakistan’s power production capacity stands at 42,131 MW – almost double its domestic electricity demand. Yet Pakistan remains the only South Asian country facing chronic power shortages, with load-shedding rampant even in major cities like Karachi. A Bloomberg report revealed that after electricity rates were sharply increased in May 2024 to secure an IMF bailout, powering a home in Pakistan can cost more than renting one.
The incongruity of ample energy supply amid persistent shortages and skyrocketing costs has reignited public criticism of Pakistan’s Independent Power Producers (IPPs), particularly Chinese IPPs under the China-Pakistan Economic Corridor (CPEC). At the heart of the issue are the high “capacity payments” mandated by Power Purchase Agreements (PPAs), which obligate the government to pay the IPPs regardless of electricity consumption or even production. The public has increasingly demanded renegotiation of these agreements, especially with CPEC power projects, to address inflated tariffs and reform Pakistan’s power sector.
No comments:
Post a Comment