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Tags (12)
- Pakistan
- All Pakistan WAPDA Hydro Electric Workers Union
- PSI
- Public Funding for Development
- Privatisation
- Asia & Pacific
- South Asia
- Friedrich-Ebert-Stiftung
- Centre for International Corporate Tax Accountability & Research
- All Pakistan United Irrigation Employee Federation
- Utilities
- CDA Mazdoor Union
Profits Over People: How Privatisation of Pakistan's Electricity Sector is Failing Consumers
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A new report, jointly commissioned by Public Services International (PSI) and Friedrich Ebert Stiftung (FES), and written by Edward Miller of Centre for International Corporate Tax Accountability and Research (CICTAR), exposes how Pakistan's power purchase agreement model has enabled windfall profits for private electricity companies while pushing electricity costs to unaffordable levels for households and businesses.
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The report shows that over the last two years, more than half of the electricity costs paid by consumers went towards paying companies not to generate electricity. In the last decade, generating capacity increased by 86% but electricity delivery rose by only 31%.
The report analyses in details some of the biggest and most profit making power companies in Pakistan. It also shows that government entities are able to produce the same electricity at a much lower cost. Ultimately, it is the public sector companies that are holding the grid, even though private companies are amassing all the profits.
The report calls for an immediate moratorium on the proposed privatisation of Pakistan's electricity distribution companies (DISCOs), arguing that further privatisation will deepen — not resolve — the crisis.
The report is a valuable resource for the Unions, researchers and organisations who need to show evidence against policies pushed by international financial institutions such as the IMF and the World bank.