LAHORE: The Pakistan Industrial and Traders Associations Front (PIAF) has stressed the need for overhauling the power sector through some drastic measures as the total cost of inefficiencies in the power sector is estimated at a whopping Rs9.6 trillion during the last one and a half decade.

PIAF Chairman Faheemur Rehman Saigol stated that the circular debt stock has crossed Rs4 trillion after Rs400 billion were added to it during the current fiscal year.

He said that in present scenario the energy efficiency and conservation are key measures used by countries across the globe to mitigate associated risks. However, in the case of Pakistan, both energy efficiency and conservation were generally treated as alien concepts.

He noted that there was an urgent need for up-gradation of energy efficiency and conservation standards and strict enforcement, besides replacement of inefficient appliances and consumer awareness for responsible use of energy were other key areas which should be identified for action as a national priority.

He estimated that a dollar outflow of around $ 1.25 billion could be potentially saved annually through implementation of efficiency and conservation measures.

The PIAF Chairman said that the government is not ready yet to undertake structural reforms related to circular debt and management of state owned enterprises. Moreover, reliance on indirect taxes for meeting revenue goals is also a major issue meaning thereby that government should improve its taxation system if it wants to create a business friendly environment.

Copyright Business Recorder, 2023