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How to fix the power sector

Power purchase agreements (PPAs) with Independent Power Producers (IPPs), made under various regimes without careful consideration of the potential consequences, are the primary cause of Pakistan’s power crises. These contracts…

The power sector – some hard facts

Among many sectors of fiscal drain, the circular debt of the energy sector is one area on the economic landscape of Pakistan which is acting as a primary drag on…

The profundity of economic power

The US has warned of potential sanctions for any country considering business deals with Iran hours after India signed a 10-year contract with Iran to operate the Chabahar port. In…

The key to stable power tariffs

According to experts, there will be no need to raise power tariffs on a regular basis if losses amounting to hundreds of billions rupees could be reduced via the implementation…

Restructuring electricity tariffs

The power value chain is a labyrinth, where an intervention at one end can result in a mix of intended and unintended consequences at the other. Electricity tariffs at the…

The macroeconomics of electricity tariffs

In Pakistan, the landscape of power tariffs is shaped significantly by the framework of Power Purchase Agreements (PPAs) and is directly connected to macroeconomics. Under these agreements, the costs associated…

Pakistan’s power sector puzzle

With the new round of negotiations with the IMF, the power sector and its continued ailment is once again under discussion. The mounting circular debt and its crippling impact on…