Addressing power crises of Pakistan through privatization and regulation: a comparitive study

Official URL: http://risc01.sabanciuniv.edu/record=b1649001 (Table of Contents)

Power crises in Pakistan up until now have seen no end, affecting the country's economy and population severely. This research is focused on a comparative analysis of the policy reforms for privatization and liberalization of power sector in Pakistan and India along with regulations resulting in progress in power sectors in both countries. The aim of this research is to offer solutions for the power crises of Pakistan through policy reforms which lead to privatization and liberalization of power sector. The government of Pakistan has few funds to invest in new projects and improve publicly owned power utilities. In Pakistan, policy reforms since 1994 have suggested the involvement of the private sector as a solution to growing crisis at that time. Private investments created a need for regulatory authority to control the power sector efficiently and promote competition in power sector. However, regulatory authority which was established in 1998 could not produce satisfactory results. Privatization and liberalization improved generation capacity in Pakistan, but inefficient policy reforms and regulations raised new problems with increasing supply demand gap after 2005. In contrast India started privatization of the power sector due to growing demand and the inability of government to address it in the 1990s. A comparative analysis of policy reforms and regulations shows that India was quite successful in solving its problems after 2003. Pakistan can learn from the privatization and liberalization experience of India because India has faced similar problems to those Pakistan now faces.