Energy crisis

The IMF has completed its re­view of Pakistan and approved the loan with instructions to the Government of Pakistan to reduce inflation and increase electricity and gas rates for the public. On the other side, the ADB, OPEC Funding, Islamic Trade Finance, and the Sau­di Development Fund are providing loans for the construction of new hydro power stations in Pakistan.

Pakistan’s maximum power usage is 20,000 MW, while its production capacity is 45,000 MW, for which the government of Pakistan has to pay monthly fixed charges called ca­pacity charges. Hence, electricity in Pakistan will cost double because of the extra production capacity. How­ever, to justify keeping old pow­er plants active beyond their con­tracts, the government had to create a false load shedding issue.

Now the government is selling even less than 10,000 MW due to 8-hour load shedding across Paki­stan while having to pay for 45,000 MW generation. This created an imbalance in payments coming in and payments going out, which is now called the Circular debt.

These international expert orga­nizations should be forcing the gov­ernment to fix this issue by ending contracts and payments to 25,000 MW old thermal power plants, but they are simply overlooking this is­sue and funding even more power plants on loans to increase this im­balance even further.

While the people of Pakistan have been suffering for many years from these fake load shedding is­sues, a few politicians were mak­ing billions by selling generators, diesel fuel, solar panels, and UPS batteries. Unfortunately, this vi­cious cycle to destroy the people of Pakistan will continue because the IMF has agreed to give more loans.



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