Privatization of Pakistan’s Power
This story originally appeared in the September 2011 edition of the Searchlight South Asia newsletter created by Intellecap for the Rockefeller Foundation.
By Usha Ganesh
In an attempt to deal with the mounting energy crisis in the country, the Economic Coordination Committee of the Cabinet in Pakistan has approved a new framework for operational and maintenance contracts that essentially handover management of power generation companies to the private sector for a period of 10 years.
This move is expected to improve efficiency at the power plants, which are currently maintained and operated by the government, and increase power supply to the tune of 1,243 megawatts of electricity. The cash-strapped Government of Pakistan cited paucity of resources and capacity to undertake the much-required upgrade for these power plants as the main reason for privatization. This move would also mean a reduced subsidy burden for the government, which otherwise bears the differential between a higher cost of production and a lower distribution cost. » Continue reading “Privatization of Pakistan’s Power”
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