The National Institute of Public Policy (NIPP) organised a roundtable discussion on “Quagmire of Circular Debt: How to get out of it?” in Lahore on Thursday, 6 June2024.
The panel featured prominent experts including Founder & Chairman Hybrid Technics Private Limited Syed Muhammad Mohsin, Economist Mr. Savail Hussain, CEO Maple Leaf Capital Mr. Waleed Saigol, Senior Journalist Mr. Ahmad Fraz Khan, Managing Partner, UHY Hassan Naeem & Co. Dr. Ibne Hassan, and PU Professor Dr. Waseem Subhani.
The session was moderated by Dr. Naveed Elahi, Dean NIPP. It was attended by Research Associates and Research Fellows of NIPP, including Dr. Saifullah Khalid, Dr. Sumreen, Ms. Sabina Babar, Dr. Abdullah, Habibullah Khan Addl. Director, Mr. Sajid Sultan and others.
Dean, Dr. Elahi stated that Pakistan was facing Quagmire of Circular Debt. It is a result of a complex interplay of factors, including inefficiencies in billing systems, delayed tariff adjustments, financial costs, and unbudgeted subsidies. To mitigate these crises, it is crucial for the state to address mismanagement, power shortfalls, and structural concerns through demand-side management.
Dr. Ali Abbas presented a content analysis on the issue of circular debt highlighting the current situation, causes, economic impact, policy responses by government, and recommendations.
The discussion highlighted the causes and effects of Pakistan’s persistent internal security threats like terrorism, extremism, insurgencies, sectarianism etc. The panelists identified lack of political will as the main reason of non-implementation of multiple security policies drafted over the last decade.
Panelists identified major causes such as ineffective governance and policies, system inefficiencies, high debt servicing costs, electricity theft, and burdensome capacity payments.
The panelists underscored the need for privatization, efficient power generation, accumulation, distribution, and recovery in energy sector. Furthermore, they emphasized the need for development of task force, better governance, improved law and order situation to deal with power crises.
NIPP aims to build consensus on actionable strategies emerging from the roundtable for effective policy implementation.
National Institutes of Management Lahore, Karachi, Peshawar and Islamabad conducts Senior Management Course (SMC) for 16 weeks (twice a year) for BS-19 officers for promotion to BS-20. The 35th SMC at NIM Lahore, concluded on 12th July 2024, has 46 participants from various service group
