The country is confronted with a power crisis since 1990, but the crisis went from bad to worse in 2007 and continuing. It has persisted onwards till now but determining it has remained an enigma. One cannot deny that protracted rolling blackouts have cost over 2 per cent of GDP annually in the lost output alone across the country, leading to anaemic growth in investment and jobs and meanwhile, stunting industry and exports.

It is true that chronic power supply deficits flow where there is excess installed capacity, but as ill-luck would have it, there is not enough cash inflow in the system to run it. Another serious problem making the situation worse is the circular debt issue. There is circular debt or cash flow shortfall in the power sector from non-payment of obligations by the consumers, distribution companies and government, which has decreased from 1.6 % of GDP in 2008 to 5.2 per cent of GDP in June 2020. Adding insult to the injury, it has increased up to 2,300 billion as of November 2020.

It is due to the destabilization of fiscal management and imposition of prohibitive opportunity costs in terms of preventing the government from crucial expenditure on infrastructure and social spending. In other words, macroeconomic challenges fuel the fire of power crisis.

It is time to pay heed to the issue now. Otherwise, it is likely to take a heavy toll on the country directly or indirectly. The government should deal with the crisis in the best interest of both the country and the public.

ABDUL QADEER SEELRO,

Larkana.