Absence of competitive bidding and non-transparent power procurement process has brought structural rigidity and hindrances to the creation of a competitive market. Generation sector did attract private investment but get stuck in the cost-plus model. Guaranteed capacity payments have increased the cost of generation. Decision-makers have always chosen short term fixes to avert crisis instead of a long-term well thought out strategy. Political expediency and short term goals resulted in longterm contracts; the end result is high prices for the consumers.
ISLAAH: The Immediate Reform Agenda for Pakistan
April 1, 2024
