As a new World Bank study has called subsidies on electricity charges ‘disproportionate,’ the government is negotiating another loan programme with the Asian Development Bank to support various sectors in the country. The study believes the correlation between measured power consumption and household welfare is weak and this goes in the favour of the rich consumers. According to the news reports, the new loan programme of $4.77 billion covers energy, transport, natural resources, water and urban infrastructure, services and public sector management. There are several complicated sets of arrangements including policy-based programmes and multi-tranche financing for 2017, covering cost-sharing and financing parameters for a period of three years. The programme envisages a ceiling of 85 percent for the loan portfolio and 90 percent for the technical assistance portfolio.Pakistan occupies a place in group ‘B’ list of the developing countries in the bank and is eligible for various lending programmes.
The latest suggestion of the loan programme shows the government would not miss an opportunity to burden the nation with more liabilities. The present set up has allegedly sold its financial sovereignty by accepting a three year loan programme from the International Monetary Fund. The ADP’s sovereign operations amount comprises $3.2billion from regular ordinary capital resources and $1.1bn from concessional lending resources. In a country which is already marred by corruption and mismanagement, this kind of loans allegedly bring windfall for the black sheep in the official cadre. The result of the previous loans is testimony of the fact that how public money is used and misused in non-productive sectors. Despite the presence of strict check and balance system in the official level, no one dare challenge the imprudent spending by the ruling or influential political elite. Loans area the burden on the economy and on every individual of this nation. The governments come and go, leaving behind heaps of financial and administrative troubles for the next government. And this is going on in this country since independence.
The amount of the proposed loans will be used to set up rapid public transportation projects in Peshawar and Karachi and improve the conditions of the national and provincial highways. The government has already taken loan to improve railway system, but the condition of this largest job provider of the country is before everyone. The energy supplies could not be improved despite signing various loan programmes. Loans alone could not serve any purpose unless the government improves its administrative and managerial abilities and launch capacity building programmes for the policymakers.
