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Post-IMF – What to do?


This is my second script on issues post IMF, as and when it happens. So far even IMF terms are not clear. Never the less. we, nation as such, has to put our own house in order. I have the honour to observe the issues both from government side being on such appointments and 25 years in corporate sector. The budgets, unfortunately are prepared in Q Block Rooms, notwithstanding stream of proposals they get from all and sundry. Yet final document normally is replica of last budget with cosmetic changes. So far no budget has gone for structural reforms and revolutionary steps. Upcoming budget, in the shadow of IMF conditionality’s is not going to be different. But this can not go on and cycle has to be broken. There are three major areas which must be touched to create saving. First is theft of electricity, present loss reach up to 40 percent in distribution companies and in transmission lines. Where as world average is hardly 5/6 percent. This is loss of billions of rupees, not only capacity is not used , people have to suffer menace of load shedding. It is also one major cause of circular debt. Thus first priority is to put transmission system right. Lot of work is already in the know but again hand of corruption does not allow its implementation. Iron hand is required to ensure implementation. Corrupt elements have to be crushed. This call for special legislation.
The other is proper electricity management . Couple of years back I had an opportunity with Romanian experts on visit, they were amazed how much we are loosing on outdated transmission system. . In 2005 I had a meeting with David Ross, an alternate energy expert. He was invited by Musharaf Government to recommend alternate energy measures. He was categorical we are mismanaged people. Pakistan has Natural resources which if harnessed can change not only energy sector but also save billions. A 5 MG plant need dung of 20000 cattle heads and will not only provide electricity for small town at very cheap rate, will also provide gas, organic liquid fertiliser and compost. It’s sale will off set cost substantially, such a plant is expected to cost around 60-70 million rupees. There can be bigger plants for larger towns and district cities. In 2007 50 MG plant as public private partnership was planed which could not be completed due to Lawyers movement. The plants can be set on Public Private enterprises, wherein Town committee, MCs can be public partners. In ten years whole the rural spectre will change. Thousands of MW electricity so saved will be available for Industry. A prototype was built at Landhi Karachi. Mafias did every thing to fail it.
In Baluchistan. Since cities are apart in rural hilly lands, every city and town be made self sufficient with solar power as it is economically viable. This will initiate rural economy in Baluchistan. This has to be done again public private partnership, again town committees, MCs be major partner but management in private hands. Water, I already dwelt in my earlier article. Hundreds of small storage dams be built to catch rain flood waters. Above measures, in fiscal terms will save and generate billions. In the coastal belt, in wind corridor, in small towns smaller wind clusters can serve the purpose as independent units where national grid lines are not available.
In my next article we will dwell how to improve taxation from grass roots level to corporate level. Social responsibility and impact of growing population which eats away all the progress.
We pray to opposition to cooperate in the reconstruction of country beset with external and internal threats.

To be continued…