EconPapers    
Economics at your fingertips  
 

Circular Debt—an Unfortunate Misnomer

Afia Malik

No 2020:20, PIDE-Working Papers from Pakistan Institute of Development Economics

Abstract: The electricity sector in Pakistan has suffered huge losses (cumulated loss of Rs 5 trillion about 12 percent of current GDP). The nomenclature of “circular debt” has confused policy-makers to think that it is a mere accounting problem and not a result of deep structural issues that need to be carefully unravelled. Besides creating budgetary issues it has badly affected the overall sustainability of the electricity supply chain for many years. The study finds that not only governance issues, operational and commercial inefficiencies in the system; it is the lack of effective planning and flawed policies on the generation side, and distortions in our pricing strategy accompanied with irrational subsidies on the demand side, that are contributing to this financial liability.

Keywords: Circular Debt; Power Sector; Governance; Weak Policies (search for similar items in EconPapers)
JEL-codes: G38 H11 L94 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2020
New Economics Papers: this item is included in nep-ene
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.pide.org.pk/pdf/Working%20Paper/WorkingPaper-2020-20.pdf First Version, 2020 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 503 Service Temporarily Unavailable (http://www.pide.org.pk/pdf/Working%20Paper/WorkingPaper-2020-20.pdf [301 Moved Permanently]--> https://www.pide.org.pk/pdf/Working%20Paper/WorkingPaper-2020-20.pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pid:wpaper:2020:20

Access Statistics for this paper

More papers in PIDE-Working Papers from Pakistan Institute of Development Economics Contact information at EDIRC.
Bibliographic data for series maintained by Khurram Iqbal ().

 
Page updated 2022-09-28
Handle: RePEc:pid:wpaper:2020:20