Posted 4/4/2024, 1:04:26 AM
Pakistan's Power Sector Debt Soars to Rs5.5 Trillion; World Bank Urges Energy Reforms and Renewables Shift
- Power and gas circular debt has risen to Rs5.5 trillion (5.1% of GDP) by January 2024
- Energy inflation increased from 40.6% to 50.6% in 1HFY24 due to significant domestic energy price hikes
- World Bank calls for further electricity and gas sector reforms to align tariffs with supply costs
- Inefficiencies in distribution companies and electricity theft contribute to accumulating debt
- World Bank advises transitioning away from imported fossil fuels to renewables to reduce costs
