The Asian Development Bank has approved a multi-million financing facility for the development of power transmission system in Pakistan. The country has been in the grip of severe energy crisis for the last two decades but another issue – line losses – has come as the worse than the energy shortage in recent years. The loan, amounting to $810 million, will be used to rehabilitate and expand the transmission network, increase transmission capacity and improve reliability and quality of energy supply. The ADB will provide $800 million through ordinary capital resources and $10 million through the Asian Development Fund to ensure energy efficiency, security and transparency. The loan will be delivered in 10 years from 2016 to 2026. According to experts, the continuous power shortages has reduced the growth of the gross domestic product by two percent in 2012 and 2013 and slowed down production in the large-scale manufacturing in recent years.
The country needs to introduce reforms in transmission and supply system to curtail line losses and increase its efficiency and capacity. It is hoped that injection of money will not only improve the transmission system but will also support transparency within the energy sector. The country’s economy is expanding despite all odds and electricity is the basic requirement to run the wheel of industry. Shortage of electricity is severely affecting the quality of life of the people in addition to the industrial growth in the country. The government should also concentrate on curtailing the electricity cost which increases the cost of production. Pakistani exporters are in tough competition with the other countries in the region and high cost of production is one of the main causes in the fall of exports. According to the bank official, a reliable and sustainable power sector is critical to the economic growth and well-being of the country and hoped that fast implementation of the loan facility and reforms will definitely improve energy supply.
The policymakers have their own vision of economy and they mostly rely on obtaining foreign loans without keeping their own house in order. Apart from line losses, pilferage of electricity at domestic and industrial levels is going on unabated and the individuals involved in the business are apparently immune to any check and balance. The criminal minded electricity thieves carry on their activities in cahoots with their like-minded individuals in the government departments, causing billions of rupees losses to the national exchequer. Unless the decades-old transmission system is overhauled and transparency is ensured in all the sections of the water and power authority, the nation will continue to face energy woes.
