Essay On Load Shedding Is Dangerous For Economy Of Pakistan

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Reforms must therefore go beyond liberalizing energy prices to address several aspects of the power sector distortions, including prioritizing gas allocation for efficient power generation and adopting tariff mechanisms that encourage performance.

Increased access to reliable power must be made a priority.“Power sector reform should be a top priority, as few other reforms could yield economic gains of a similar magnitude so quickly, based on findings from this report,” says Fan Zhang, Senior Economist at the World Bank and author of the report.Today there continues to be load shading despite having no shortfall.Thus, even if we were able to generate more electricity, load shedding would still not be reduced because of the lack of capacity in the transmission system.To learn more or modify/prevent the use of cookies, see our Cookie Policy and Privacy Policy.Pakistan has faced major challenges in its socioeconomic situation over past seventy years. The key problems of today include: water scarcity; the lack of sustainable development projects; an increasingly unemployed youth population; the lack of focus on human development projects; a continuous reduction in the foreign exchange reserves; the increase in non-developmental expenditures; the increase in public debt; the unequal distribution of wealth; the rising deprivation in Baluchistan, interior Sindh, and Southern Punjab; unpleasant relations in the region, especially with the eastern and western neighbours; the poor condition of small and medium enterprises (SMEs); and the failure to effectively implement the local bodies system, which is considered the basis for democracy.Pakistan can boost economic growth and job creation by overcoming inefficiencies in its power sector,” says Illango Patchamuthu, World Bank Country Director for Pakistan.“Reforms that address these distortions can make better use of existing facilities.The increasing severity of floods and silting of dams is leading to decrease in their storage capacity as a result of deforestation.In the future, the water crisis will more serious than the load shedding crisis.These need to focus on eliminating waste, promoting the shift towards cleaner energy and attracting private investments.” A lack of grid electricity also impacts health, as it leads to greater use of kerosene lamps, causing indoor air pollution linked to respiratory infections and tuberculosis risks.The report argues that reforms that focus solely on liberalizing energy prices would lead to an excessively high cost of electricity because of inefficiencies in the system, negatively impacting the poor and vulnerable.


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