Business Leader Calls for Structural Reforms in Pakistan’s Power Sector

Karachi: Efforts to address Pakistan’s longstanding circular debt in the power sector are commendable, according to Mian Zahid Hussain, a prominent business leader. He has praised recent government measures aimed at eliminating this financial burden while warning against imposing increased tariffs on consumers.

The circular debt, characterized by a cycle of unpaid bills and loans within the power sector, has been a persistent challenge for the Pakistani economy and its industries. Mian Zahid Hussain, who holds multiple leadership roles, including Chairman of the National Business Group Pakistan, highlighted that this debt weakens power generation companies and hampers investment.

Speaking to the business community, Hussain noted that government actions such as borrowing to settle dues and curbing electricity theft are positive steps. However, he cautioned against making the public bear the cost through higher electricity bills, suggesting instead a focus on administrative reforms.

Hussain identified core issues like electricity theft and inefficient transmission systems as the root causes of circular debt. Without addressing these, financial strategies may falter, leading to increased reliance on bank loans and further public burden.

He advocated for greater autonomy and oversight for electricity distribution companies and suggested public-private partnerships in renewable energy as a means to improve power generation and reduce fuel imports.

Transparency and accountability in reform initiatives are vital, according to Hussain, to prevent vested interests from undermining progress. He also urged the government to lower electricity tariffs to boost exports and tackle the trade deficit, emphasizing the need for a balanced and sustainable energy policy.