ISLAMABAD – A new World Bank report has revealed stunning information overlosses to Pakistan economy due to power sector inefficiencies.
As per the report, Power sector’s inefficiencies cost the Pakistan’seconomy $17.7 billion (6.5 percent of GDP) during the fiscal year of2014/15, a World Bank’s report said.
“The full cost of distortions in the power sector is far greater thanpreviously estimated on the basis of fiscal cost alone,” the report, titled‘In the Dark: How Much Do Power Sector Distortions Cost South Asia’, said.“Some of the largest costs are upstream or downstream, making the case fora stronger prioritisation of power sector reform.” World Bank CountryDirector for Pakistan Illango Patchamuthu said the country can boosteconomic growth and job creation by overcoming inefficiencies in its powersector.
“Reforms that address these distortions can make better use of existingfacilities,” Patchamuthu said in a statement. “These need to focus oneliminating waste, promoting the shift towards cleaner energy andattracting private investments.”
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The bank’s report said the total losses in annual output attributable topower shortages amounted $8.4 billion in fiscal 2015 in manufacturing andservices combined.
