There has been a considerable debate on currency management for a while. The pendulum of currency swung between defending currency to supposedly market based exchange rate in the recent times. The side-effects of both extremes are much clearer in hindsight and this may perhaps be a good time to look at their pros and cons objectively.
Pakistan seems to be suffering from the same syndrome. The obsession and the unwavering trust in multilateral agencies, including IMF, and the traditional foreign bilateral partners, particularly Saudi Arabia in the context of helicopter money, and the bells & whistles attached with the helping-hand ever extended by them in the past, fits the bill perfectly to categorise the situation, as such, in the context.
Pakistan has been faced with power crises and its multiplier effect on the economy for decades. This issue has been reviewed extensively and many options have been debated by experts at private and governmental level. I would like to add my views to this important debate which surely requires quick action. In order to have a coherent and meaningful debate on this subject, it’s critical to divide this topic into two distinct parts – transmission and distribution (T&D or Discos), and generation.
PAKISTAN’S energy crisis and its viable solutions have been extensively debated in the recent past. Two factors that must be kept in mind when discussing any solution are affordability (cost and pricing) and availability (net thermal efficiency/usage) of fuel and electricity. There are no quick fixes to this problem, but some options exist to accelerate the resolution of the issues.