Power sector reforms

Published April 26, 2014

PRIME MINISTER Nawaz Sharif has promised to bridge the electricity supply gaps in the country in the next two and a half years and add 21,000MW of new power to the national grid over eight years. Both are difficult targets Mr Sharif has set for himself. He, however, seems to have been encouraged by an earlier-than-scheduled commissioning of the two gas turbines at the Guddu thermal power project and the inauguration of the Uch project-II this week.

The expansion of the Guddu project has already added 486MW to the national grid, and the completion of the third turbine next month will take new generation from the project to 747MW. The Uch project will add another 404MW to the system. At the same time, work on several hydel and thermal power projects has already been initiated with financial assistance from multilateral and bilateral donors as well as Chinese and domestic investors.

The completion of these projects will certainly mitigate the pain of industrial and domestic consumers who are suffering from long power cuts despite paying a price said to be the highest in the region. Indeed, the Nawaz Sharif government is more focused on removing the electricity supply gaps than its predecessor. Even a partial success in implementing the proposed projects will significantly bring down the duration of the power cuts by the end of its term in 2018.

But the focus on new generation is not enough. The government should also be implementing the required power sector reforms that it had promised in its energy policy last year. For example, the government has so far done little to check power theft, reduce transmission and distribution losses and recover unpaid bills from public and private defaulters.

Nothing has been done to improve the management of or stop rampant corruption in public-sector power companies. Consequently, we are seeing a fresh build-up of the inter-corporate power sector debt of slightly less than Rs300bn in nine months after having retired the previous one of Rs480bn last June.

The economy and consumers may continue to suffer power cuts and pay a high price for a much longer period than the one stated by Mr Sharif unless governance reforms are implemented in the energy sector.

Opinion

Editorial

PIA’s privatisation
Updated 01 Jul, 2026

PIA’s privatisation

THE management control of PIA has finally been transferred to a consortium comprising private investors and the ...
Rights beyond rulings
01 Jul, 2026

Rights beyond rulings

THE Supreme Court’s recent ruling that jewellery, bridal gifts and dowry articles given to a bride remain her...
Asia left behind
01 Jul, 2026

Asia left behind

ALARMING regression has been witnessed in the Asian teams at the FIFA World Cup. A record nine representatives from...
Resurgent threat
Updated 30 Jun, 2026

Resurgent threat

THE message from Islamabad to Kabul seems to be clear: any act of terrorism inside Pakistan found to be linked to...
Unchecked powers
30 Jun, 2026

Unchecked powers

THERE is little disagreement that Punjab needs stronger tools to combat organised crime, habitual offenders and...
Patriot Pass
30 Jun, 2026

Patriot Pass

IT must be a shared humanity that has bonded the ‘leader of the free world’ so closely with his counterparts in...