The World Bank has sounded the alarm in the energy sector
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The World Bank has sounded the alarm in the energy sector.
In this regard, the World Bank says in its report that if there are no energy reforms, electricity will have to become more expensive, the poor class will have to be saved from the rising electricity rates.
The World Bank has described the losses of the energy sector as a threat to the economy and said that the revolving debt of the power sector has reached 2635 billion rupees by January 2024.
The report states that electricity debt has reached 2.4 percent of GDP, circular debt in gas sector has reached 2866 billion rupees, gas sector debt has reached 2.7 percent of the economy.
The World Bank said that the losses of electricity distribution companies have increased from 0.2 percent of the economy to 0.5 percent. reached.
The report states that the World Bank is helping to reduce transmission losses in the energy sector, the government of Pakistan has to improve the timely receipts of the energy sector.
According to the report, government losses in energy, infrastructure and communication are continuously increasing. In the electricity sector, losses are mainly due to theft, transmission and distribution, old infrastructure, delay in revision of consumer tariffs as well. Losses increased, the increase in electricity price this financial year has helped to limit the losses.
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