Giving A Fair Deal To Distributed Solar In Pakistan

Giving A Fair Deal To Distributed Solar In Pakistan

Written By Dr Shahid Rahim

Prime Minister Shehbaz Sharif recently warned that if the gross inefficiency and corruption in the Federal Bureau of Revenue (FBR) and the power sector were not corrected timely, these could sink the country. We can't say whether he picked these two due to the sheer size of their problems or because both use the same governance approach--squeezing only the responsible citizens, as taxpayers or ratepayers. We leave the case of FBR to some other analyst and focus on the power sector only.

Pakistan's power sector is indeed in dire straits today. Corruption is rampant, losses are high, bill recoveries are poor, and circular debt is spiralling up. The prime minister's concerns are timely and genuine, but his team's approach to counter this threat — going the traditional route of forming task forces comprising members drawn from various ministries to identify the major issues and suggest solutions within weeks — does not convey much hope. It has been tried before, is ad hoc, and lacks any novelty or ingenuity. ? The chances of any respite for the nation are minimal, unless the government rethinks its present approach and aligns it with new market realities that have changed in the past couple of decades. Confucius, the ancient Chinese sage, offers timeless advice: "When it is obvious that the goals cannot be reached, don't adjust the goals, adjust the action steps."

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