The World Bank claims that if energy reforms are not put into place quickly, the poor will bear a heavy price in the form of higher electricity rates.
The Bank stated, “The poor must be saved from the rising electricity rates,” and that losses in the energy industry threaten Pakistan’s economy.
The spiraling circular debt, which in January 2024 reached Rs 2,635 billion in the power sector and Rs 2,866 billion in the gas sector, underscores the worrying state of affairs in the energy industry. With these debts making up 2.4% and 2.7% of the nation’s GDP, respectively, the economy is seriously threatened.
The research states that the losses incurred by electrical distribution companies went from 0.2% to 0.5%.
