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Pakistan News Releases

Published Date: Apr 25, 2013

Reasons behind energy and economic crisis are poor management, lopsided priorities and lack of accountability

at a discussion entitled “Awam Chahte Hai” on energy and economic crisis said
only a change of attitude and life style can help overcome this national level
crisis. They said the reasons behind energy and economic crisis are poor
management, lopsided priorities and lack of accountability.

dialogue series on the energy and economic crisis here on Thursday was first of
the series of dialogue organized by Sustainable Development Policy Institute
(SDPI) in coordination with South Asian Free Media Association (SAFMA).

Ud Din Ahmed, Executive Editor, Daily Express Tribune moderated the

Abid Q Suleri, Executive Director SDPI, while discussing the issue with
participants from cross-section of society said that in the last 5 year GDP
growth in Pakistan is facing boom and bust phenomena. Decline in GDP growth has
been observed in previous years, which at present stood at 3 percent now.

he said, it is important to know that consumption is leading our GDP growth other
than manufacturing, production or industry. He said that poor tax policies,
power sector issues and weak governance are reflecting our weak fiscal health.

Suleri gave an insight about future by saying that the upcoming government has
to face a challenging situation due to power sector circular debt, stock of
unpaid commodities, PSE contribution towards fiscal deficit and devaluation of

is continuous 4th year we are witnessing low GDP growth due to energy crisis”,
lamented Dr Suleri. Further he added that Nepra has come to 88 percent deficit
in collection and transmission losses. Giving solution to the problem, he said,
Nepra has to be depoliticized and made an independent authority.

also demanded reduction in the cost of generation of electricity, improvement
in hydro generation and building of large dams. “Water supply is poor in the
country which can also affect our agriculture and food security.

suggested that the next government has to learn from the mistakes of previous
governments and has to propose a reform agenda without being biased to
provinces. “Reform the PSE, promote public private partnership, rationalize the
procurement of sugar and end this SRO culture”, he stressed.

Achakzai, renowned economist said that Pakistan is facing serious energy crisis
that is affecting its economy and the various sections of the society. The
political leadership needs to engage itself in policy planning immediately
besides helping the country attract much need investment in different sectors.

cited the example of Argentina and Greece economic decline in this regard and
suggested that Pakistan need to avoid falling in such a situation at all costs.
“To avoid this situation we have to change our economic policies radically with
the help of expert’s input and resource mobilization” said Achakzai. While
talking about tax collection he said that only salaried classes are paying
taxes while rich and influential including big most business houses are not
included in the tax net.

Vaqar Ahmed, Deputy Executive Director SDPI while deliberating upon the
solution aspect of the matter proposed various strategies. He suggested that
Pakistan has to follow the integrated plan proposed by previous government and
also consolidate all the energy ministries and departments into one ministry.

gave the example of India which rightly and timely deregulated its energy
sector. He said that India, United State, China and Germany have expressed
interest to invest in Pakistan’s energy sector but for that we need pricing and
operation reform, control on line loss, reform for attracting investment in
energy sector and developing a clear audit system.

stressed the need for making energy conservation a priority at government and
non-government level beside addressing the circular debt issue. He criticized
the role of Pakistani academia on energy sector and said not a single research
paper has been originated and published by them on the energy crisis.

as discussant Mubarak Zeb, a senior journalist said that unprecedented
devaluation of currency, incidence of taxation, special tax on petroleum
increases the price of petroleum rate in domestic market.