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Pakistan’s Power Crisis: How Did We Get Here?

Author

Listed:
  • Kamal A. Munir

    (Judge Business School, University of Cambridge, United Kingdom.)

  • Salman Khalid

    (Emerging markets investments professional.)

Abstract

This article has a rather modest aim. In contrast to most analyses that abound, it submits that Pakistan’s energy crisis stems primarily from a suboptimal policy and only secondarily from governance issues. This does not mean that governance is not an important issue. With around 20 different organizations involved in the power sector—e.g., WAPDA, PEPCO, PPIB, AEDB, GENCOs, and IPPs—there is much scope for governance failures. In addition, there is much malfeasance perpetrated by political and other interests. Still, since governance mechanisms are significantly shaped by incentive systems and operating policy regimes, we will argue that the problem lies primarily in policy choices made earlier, and focus in particular on two elements of the policy that need to be revisited.

Suggested Citation

  • Kamal A. Munir & Salman Khalid, 2012. "Pakistan’s Power Crisis: How Did We Get Here?," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 17(Special E), pages 73-82, September.
    • Handle: RePEc:lje:journl:v:17:y:2012:i:sp:p:73-82
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    References listed on IDEAS

    as
    1. Rehana Siddiqui & Hafiz Hanzla Jalil & Muhammad Nasir & Wasim Shahid Malik & Mahmood Khalid, 2008. "The Cost of Unserved Energy: Evidence from Selected Industrial Cities of Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 47(3), pages 227-246.
    2. repec:pid:wpaper:2012:4 is not listed on IDEAS
    3. Rashid Amjad & Musleh Ud Din & Idrees Khawaja & Nasir Iqbal & Ahmad Waqar Qasim, 2012. "Fiscal Federalism In Pakistan," PIDE Monograph Series 2012:4, Pakistan Institute of Development Economics.
    4. Afia Malik, 2012. "Power Crisis in Pakistan: A Crisis in Governance?," PIDE Monograph Series 2012:1, Pakistan Institute of Development Economics.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Kashif Raza & Asad Ali & Muhammad Toqeer Abbas, 2014. "The Role Of Economic Indicators In Perspective Of Energy Crisis In Pakistan," Pakistan Journal of Humanities and Social Sciences, International Research Alliance for Sustainable Development (iRASD), vol. 2(1), pages 1-17, Juna.
    2. Ullah, Kafait & Arentsen, Maarten J. & Lovett, Jon C., 2017. "Institutional determinants of power sector reform in Pakistan," Energy Policy, Elsevier, vol. 102(C), pages 332-339.
    3. Imran, Muhammad & Amir, Namra, 2015. "A short-run solution to the power crisis of Pakistan," Energy Policy, Elsevier, vol. 87(C), pages 382-391.
    4. Naqi Shah, Sadia & Qayyum, Abdul, 2016. "Analyse Risk-Return Paradox: Evidence from Electricity Sector of Pakistan," MPRA Paper 68783, University Library of Munich, Germany.

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    More about this item

    Keywords

    Power crisis; policy; governance; Pakistan;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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