A few days ago, this report came out that the amount owed by the Independent Power Producers (IPPs) to the Ministry of Finance has reached 1800 billion rupees and the revolving debt of the energy sector has reached 2310 billion rupees.

That is, they have demanded immediate payments from the government to improve the supply of fuel, otherwise there is a fear of reduction in electricity production and late payment surcharges will also be imposed.  Examining its debt repayment capacity, to get out of this situation, Pakistan is worried about requesting friendly country China to extend the $15.3 billion loan to IPPs for five years. According to the sources, Pakistan will need the consent of the Chinese government for this process.

According to the reports received, if the loan extension to the Chinese IPPs is granted, its size will increase from 15.3 to 16.61 billion dollars.  The probable explanation of the Pakistani authorities is that the consumers are suffering from a heavy financial burden due to the payments made under the current electricity tariff structure, this burden can be reduced by extending the period. There are 21 projects of IPPs, out of which 8 are coal, 4 hydro, 8 wind while one is transmission line. Pakistan's possible talks with the Chinese authorities will certainly help in reducing the burden of electricity bills on the consumers.  Prime Minister Shehbaz Sharif is going to visit China in the first week of June, and in the context that the common man is very worried about the electricity tariff, it is hoped that he will return with a positive response from the Chinese authorities and from the IMF.  It will not be unreasonable to expect that it will play its role in reducing energy prices.

A few months ago, the report issued by the International Development Research Lab based in the United States said that China has given Pakistan 68 billion dollars in the last 21 years. The surplus loan was provided, in which two percent of the amount was given in the form of aid, so Pakistan has become the third largest country in the world to receive loans from China since 2000, and the countries receiving more money than that are Russia and Venezuela. , who have borrowed about $169 billion and $112 billion respectively from China. This situation shows that many developed countries, including the United States, are indebted to others, but a comparative assessment with Pakistan reveals that most Countries do not take more loans to pay off debts and the revenue targets set by their governments are met from internal sources. 

They are fulfilled from internal sources. The report says that during the Muslim League-N regime, 37 billion dollars were borrowed from China, 19 billion dollars during the Tehreek-e-Insaaf period, 10 billion dollars during the People's Party govt, while 4.1 billion dollars were borrowed duirng Pervez Musharraf era.  Some circles give the impression that other developing and poor countries, including Pakistan, have been caught in the trap of debt, but the reality is that the debt burdened by Pakistan is the result of poor policies of its governments.  With threats of bankruptcy looming over and over again, it has become imperative to promote a culture of productivity to increase productivity and reduce debt, for which short, medium and long-term programs are a prerequisite. However, there is positive progress in relation to the problems facing the assurance of all kinds of cooperation from the friendly countries in the period of economic difficulties. 

China has always helped Pakistan in difficult times and in his congratulatory message to the newly elected President Asif Ali Zardari, the Chinese President has indicated to continue this process. Iran and the Arab countries are also ready to play their role through the relationship of friendship and brotherhood.  If Prime Minister Shehbaz Sharif's government, together with President Asif Zardari, the King of Reconciliation, promotes efforts to make the situation favorable for political stability and implements the agenda announced by the Muslim League-N and the People's Party, the path to economic stability can also be paved.  The newly-elected federal government has taken the reins of the country in the difficult economic conditions, they have actually made this responsibility a bed full of thorns.  The first challenge for the government is to get another loan agreement from the IMF.  How the mountains will have to be crossed for this can be gauged from the demand of the International Monetary Fund to impose 18% GST on various items including food, medicine, petroleum products and stationery, complete abolition of the fifth schedule.  

Moreover, the exemptions from restrictions and reduced rates should be removed under the sixth schedule indeed. Experts and analysts say that if all these proposals are accepted, the prices of wheat, rice, pulses, stationery, POL products and many other items will increase further and the vast majority of the country will suffer intolerable difficulties.  Therefore, it is necessary to find alternative ways to increase the financial resources of the government. This task may be difficult but not impossible.  The previous coalition government had a good austerity plan which must now be fully implemented, including provisions for a shortened cabinet and the abolition of elite privileges. Complete elimination of electricity theft, gas theft and tax evasion can be a sure way to provide critical financial resources without burdening the public.  Full or partial privatization of all loss-making public institutions should be done as soon as possible to save national treasury resources. 

To facilitate tax payment and to prevent tax evasion through the connivance of corrupt elements of the bureaucracy, the entire system should be digitized as in developed countries as soon as possible.  The ways of economic improvement can be widened without making the life of the people more difficult. Meanwhile,  some experts says that the IMF wants reforms to ensure full recovery of electricity bills and no subsidy or discount to anyone.  Why does the country's energy crisis never seem to be resolved. Why do people steal electricity and no one catches them. Line losses are also an odd problem. If the transmission lines are not working properly, why is it taking so long to get rid of them completely.  The government must be tired by increasing the price of electricity, but the revolving debt is still increasing. But why ? On the other hand, electricity distribution companies send as many bills as they want, no one is asking. It would be good to pay serious attention to these points. It is clear that Pakistan will have to make payments of $6 billion before the end of this year in June. 

The reality is that the new government has the primary responsibility of paying off Pakistan's ever-increasing foreign debt.