Zulfiqar
FULL MEMBER
- Joined
- May 12, 2009
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- 1,640
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It is going to happen and should happen.
You can't sell utilities at a loss or even breakeven if you can't recover the full amount due. You should not subsidize it if you don't have internally generated funds to plug that revenue gap.
First generate the necessary revenues and then think about subsidizing the cost.
Moreover, even a child playing monopoly could draft better contracts than what was done by PPP and PMLN govt.We have to pay capacity payments to IPPs regardless of whether we utilize their capacity or not. This payment is going to be in 100s of billions every year. They are going to increase exponentially with the increase in FX rate for foreign sponsored IPPs.
Who the hell do you think is going to pay for it. The local population should have lynched these fuedal goons to recover payment for this ever increasing debt.
IMF debt is nothing in camparison to that.
Plus Pakistan has PKR 1400 B+ receivables & debt related to power sector.
We need to clear that book and stop line losses, eliminate subsidies and increase electricity and gas prices (The news above is not clear. Rates are increased in slabs. Not every rate is increased by 100+%).
The industries need subsidies well boo hoo! There would have been no need for subsidies if you had invested more in the local industry instead of dumping money in properties and off shore investments.
Every local seth that I know has invested a significant portion of his profits abroad.
Why should the government subsidize you for your lack of innovation? Learn something from the turks,vietnamese, bangladeshis and Israelis.
You can't sell utilities at a loss or even breakeven if you can't recover the full amount due. You should not subsidize it if you don't have internally generated funds to plug that revenue gap.
First generate the necessary revenues and then think about subsidizing the cost.
Moreover, even a child playing monopoly could draft better contracts than what was done by PPP and PMLN govt.We have to pay capacity payments to IPPs regardless of whether we utilize their capacity or not. This payment is going to be in 100s of billions every year. They are going to increase exponentially with the increase in FX rate for foreign sponsored IPPs.
Who the hell do you think is going to pay for it. The local population should have lynched these fuedal goons to recover payment for this ever increasing debt.
IMF debt is nothing in camparison to that.
Plus Pakistan has PKR 1400 B+ receivables & debt related to power sector.
We need to clear that book and stop line losses, eliminate subsidies and increase electricity and gas prices (The news above is not clear. Rates are increased in slabs. Not every rate is increased by 100+%).
The industries need subsidies well boo hoo! There would have been no need for subsidies if you had invested more in the local industry instead of dumping money in properties and off shore investments.
Every local seth that I know has invested a significant portion of his profits abroad.
Why should the government subsidize you for your lack of innovation? Learn something from the turks,vietnamese, bangladeshis and Israelis.
