Privatization is Solution of Energy Crisis in Pakistan

Energy Crisis in Pakistan is getting worst with every passing day. Although there are many proposed solution of energy crisis in Pakistan but privatization of energy sector in Pakistan is the best solution of Energy Crisis in Pakistan. WE are facing a serious energy crisis because of various factors. The centralization of energy policymaking and the federal government’s control over state institutions responsible for production, transmission, distribution and regulators are main causes of energy crises.  The private sector invested in thermal power plants, but it is allowed to sell electricity only to the distribution companies owned by the federal government.
The only exception is the KESC which has been privatized but has failed to provide uninterrupted power supply to residents of Karachi. One of the reasons is that the government is not allowing the owners to implement their policy of getting rid of surplus staff such as a driver having a monthly salary of Rs60,000 a month. They are also not being allowed to directly import furnace oil or gas to run the plant with 100 per cent capacity.
The private investor’s prime objective is to make profit first and then spend a small percentage of the profit on social activities. They hire staff on a contract basis and pay according to a person’s contribution to the organization.

Unfortunately, the federal government is using power distribution companies for its political benefit by providing jobs to its workers and supporters in these organizations even when there is no productive contribution by these employees.
The result is organizations are overstaffed and inefficient. These organizations are suffering loses in billions of rupees every year, and the government is providing them taxpayers’ money to keep functioning instead of privatizing them. There is a lack of government policy according to which it should follow the capital free market rules and entrust the business to the private sector.
Instead of following a half socialist and a half capitalist system, it is time the government decided which system is best suited to Pakistan. Nepra and Pepco, owned by the federal government, have failed to solve the energy crisis.  Now the federal government should transfer power generation and distribution to the provinces so that they can encourage the private sector to handle generation and distribution of electricity.
If the private sector can handle education, health, public transport, which is the responsibility of government, why cannot it handle power generation and distribution?
There is no other option now to overcome the shortage and provide relief to the people from loadshedding except changing the status quo of power sector. If govt. want to get rid of this energy crisis in Pakistan than they should adopt privatization to eliminate this severe energy crisis in Pakistan. (source: www.Dawn.com.pk)