New Delhi, Jan 19 (NationPress) Pakistan’s electricity sector has descended into a significant crisis, with consumers facing exorbitant electricity bills while enduring frequent outages, as reported.

The turmoil is attributed to mismanagement, corruption, underinvestment, and erratic policy, according to media reports originating from Pakistan.

The credibility of the power sector is at a historic low, as numerous policy revisions have failed to remedy the situation. It is no wonder that any financial benefits gained from private power producers through coercive measures and renegotiations have been rapidly consumed by entrenched inefficiencies elsewhere in the system, as noted in an article from Dawn.

Despite numerous policy measures, including the unbundling and corporatization of state-owned enterprises (SOEs) and private investments in power generation, the sector continues to grapple with challenges that hinder its efficiency and diminish its contribution to national economic growth, rather than offering relief to consumers across various demographics.

Electricity remains unaffordable, supply is inconsistent, and a significant portion of generation capacity remains unused, forcing consumers to cover losses resulting from systemic failures. The scale of these challenges and their repercussions for consumers is highlighted by the fact that distribution companies have added about Rs 400 billion (Pakistan's currency) to the circular debt, while consumers paid around Rs 235 billion in debt servicing surcharges during the last fiscal year, as the sector's inefficiencies have been allowed to persist and propagate throughout the supply chain—from generation to transmission to distribution, the article laments.

Regulatory authority has been progressively weakened due to administrative meddling and prolonged legal disputes, making enforcement actions sluggish, reversible, and largely symbolic. The article emphasizes that the power sector, plagued by weak governance and a lack of accountability, cannot be rectified merely through pricing adjustments and contract modifications.

The sector is not devoid of actionable reform plans. What is urgently needed is political will to implement these plans, enhance governance and accountability, resolve policy uncertainty, and fortify the regulatory framework, the article concludes.