A recent report in Business Recorder revealed that Pakistan’s energy crisis stems not from a lack of plans but from consistent neglect of implementation, coordination, and market-oriented principles. The country’s circular debt within the energy sector is escalating, exacerbating policy fragmentation and institutional stagnation. Criticism from the Federation of Pakistan Chambers of Commerce and Industry’s Businessmen Panel (BMP) underscored the government’s ineffective management of the sector, cautioning against prolonged economic instability due to repeated policy errors and delayed structural reforms.
Former FPCCI President and Chairman of the Businessmen Panel, Mian Anjum Nisar, pointed out that the mounting circular debt reflects governance failures, attributing it to years of politically motivated tariff controls, inefficient power procurement, demand overestimation, and uncontrolled capacity payments. Despite temporary relief through interest payments to state-owned entities, the debt issue persists without resolution, perpetuating a detrimental cycle.
The report further highlighted the lack of coordination among key sectors like power, petroleum, water resources, and finance, leading to conflicting decisions that inflate costs, disrupt supply chains, and undermine investor trust. This disjointed approach has resulted in energy prices in Pakistan surpassing those in neighboring economies, eroding local industry competitiveness and export potential. Manufacturers are grappling with fluctuating tariffs, frequent fuel price adjustments, and unreliable supply, prompting many to scale back operations or cease production altogether, accelerating deindustrialization and unemployment.
Pakistan’s existing committee culture, characterized by excessive reports but lacking accountability, exacerbates the situation. Mian Anjum Nisar emphasized the need for clear targets, timelines, and consequences for failures to drive meaningful structural changes, warning that cosmetic adjustments without accountability measures will not address the core issues plaguing the energy sector.
