Pakistan's power sector is mired in a tragic paradox, with citizens enduring relentless load-shedding and unaffordable bills. The nation pays Rs2.5 to Rs2.8 trillion annually to power plants that don't generate a single unit of electricity. This astronomical sum — equivalent to roughly 3% of GDP — epitomises a system where financial engineering trumps public interest, burdening consumers with costs for "capacity" that remains perpetually idle.

The roots of this scandal lie in flawed power purchase agreements (PPAs) signed with independent power producers (IPPs). These contracts guarantee fixed "capacity payments" regardless of actual electricity generation, transferring all operational and market risks to the public. As........

© The Express Tribune