News Column

Vicious cycle of inflation

September 1, 2014

DR. MUHAMMAD YAQOOB BHATTI - Lahore



It has been reported that the World Bank has issued an ultimatum to the Government to phase out IPPs and RPPs in the next ten years, or no funds would be provided to Pakistan in future. It is a warning bell for the authorities that are depending on oil guzzling power plants, depending on import of costly oil that cannot be guaranteed by the Government, resulting in the piling up of circular debt that cannot be paid, short of printing more currency notes. This results in a vicious cycle of inflation and hike in prices of energy and daily commodities to bring more anguish to the people.

No amount of power generation from fossil fuels, wind or solar energy can replace the economy that comes with relying on hydel energy. The latest fad of importing coal for energy production is ruining our country, as many forget that coal is the dirtiest fuel in vogue, forty years ago but was in bad repute and now it has proved to be harmful. The newly found love of coal by PML-N ought to be diverted to love of hydel power, that can also store much needed water in the bargain, but it appears that the PML-N Premier is not fond of shooting partridge or he would have had the pleasure of shooting two birds with one shot.


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Source: Nation (Pakistan)


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