Editorial: The Express Tribune - 30 June 2013

Resolving the energy crisis When it comes to the energy sector reforms, the Nawaz Administration appears to be making relatively sensible choices. What makes the administration’s plan particularly impressive is that it seeks to balance what is politically possible with what is technically and financially necessary. So, for instance, the government is seeking to pay off the energy sector’s circular debt in one go in order to significantly reduce power cuts and win the public’s confidence before tackling the harder bits of the problem, like raising tariffs and forcing electricity thieves to pay their bills. We also admire the government’s commitment to reduce the weighted average cost of producing electricity for the national grid by moving towards cheaper fuel sources. We worry, however, that some of these moves are being made without a more thorough analysis of the future costs. Take, for instance, the government’s agreement with the independent power producers (...