Power Sector Development in Pakistan and Economic Policy Issues (Technological Development) (Report)
Pakistan Development Review 1998, Winter, 37, 4
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Publisher Description
Part I discusses the imperatives of providing electricity. In Pakistan, the development took place against financial constraint. It was accomplished in the public sector financed through ADP; PSDP since 1984. The installed generation capacity 13228 MW in 1998 from 70 MW in 1947, 10 mln plus consumers, 65951 villages electrified (total 125083) is a break-through. Hydropower and use of indigenous natural gas in thermal plants obviated shocks of oil price hikes/crisis in early seventies was a blessing in disguise. Part II discusses the economics of the policy change wherein thermal and hydro stations will be built, owned, and operated by the private investors. The Government's March 1994 thermal policy, due to built-in one Bulk Purchase Price for all investors irrespective of plant size, technology, location, and fuel used, and individual industries installing their own plants, has created redundancy and financial crunch due to capacity payment to IPPs, and also internal inefficiencies of the utilities. The optimal use of available capacity requires a review of industrial, monetary, and fiscal policy. The relief in price alone to boost the sales can not hold. In utilities, the revamping is in vogue, through restructuring and corporatisation, with the ultimate aim of privatisation. The author's estimate of per capita consumption about 460 kWh in 2010 may look conservative. In the long term lies the optimal development of hydro, natural gas (imported), and non-conventional sources. Part III offers some recommendations. RETROSPECT OF POWER SECTOR DEVELOPMENT PART-I