"an end to energy crisis.." lol

Either people are disingenuous, ignorant or the PTI govt has done a poor job at communicating the implications of the reckless power sector policy pursued previously. This has impacted industrial competitiveness, inflation, fiscal deficit, etc 1/N https://twitter.com/napoha_/status/1263981358000615425

Between 2014-19 power generation capacity increased by 45.7% to 34,282 MW yet available transmission capacity was 25,339 MW. Hence authorities have planned outages to avoid overloading of infrastructure. 2/N

However, $ denominated capacity payments for this additional (mostly unused) generation capacity has to be paid & has in fact offset gains from declining fuel costs. These capacity payments (hence tariffs) are expected to increase in the coming years as per prior agreements 3/N

This is such a colossal mess as if its passed onto consumers it would come up in inflation numbers (pressuring currency competitiveness) and if subsidised then in the fiscal deficit numbers & hence has to be raised via taxation 4/N

However if the economy were growing then it would have been possible to rationalise this but with prior govt's flawed FX policy leading to export stagnation & blowing up of balance of payments meant there would be no meaningful growth either.

5/N

Similar to the currency debacle(USDPKR@100) this is another great example of Goodhart's Law: 'When a measure becomes a target, it ceases to be a good measure"

So not sure how exactly there has been an 'end to the energy crisis' when it has in fact become messier than before 6/6