ISLAMABAD: The business community has welcomed the government’s decision of eliminating the power subsidy.
United International Group Chairman Mian Shahid, representing the traders’ community, termed it in the best interest of country. He said that it is very difficult for Pakistan to survive without foreign aid in presence of power sector, energy and other subsidies.
Shahid said that subsidies have not benefited poor but rich while it misbalances the budget. He said that subsidies leave little funds with government to spend of public welfare, it boost demand while reduces investment in renewables. Subsidies also contributes to social injustice, discourages private sector and push up the global warming, he added.
Mian Shahid said that losses of the power subsidy have reached to an extent that it has become an issue of national security. Different countries are paying around $2 trillion in power subsidies which if abolished will reduce global demand and decrease global warming by 13 per cent, he added.
Shahid said that the country will be unable to cope with the circular debt in presence of power subsidies which is deterring local and foreign investors. Thar holds 99 per cent more energy than whole gas reserves of Pakistan put together but the speed of development is frustrating, he observed.
