“Reforms must go beyond liberalising energy prices to address several aspects of the power sector distortions,” stated the report titled “In the Dark: How Much Do Power Sector Distortions Cost South Asia”. The findings that the power tariff increase would not address Pakistan’s fiscal woes would strengthen the Pakistan Tehreek-e-Insaf’s (PTI) power sector policy. Interestingly, the IMF, World Bank and Asian Development Bank (ADB) have been pursuing the policy of increasing tariffs to end energy sector’s woes. The report noted that the cost of inefficiencies in the power sector to Pakistan’s economy was $18 billion or 6.5% of gross domestic product (GDP) three years ago. Pakistan can boost economic growth and job creation by overcoming inefficiencies in its power sector,” says World Bank Country Director for Pakistan Illango Patchamuthu.

Source: The Express Tribune December 13, 2018 03:11 UTC