New Delhi, Jan 19 (IANS) While Pakistan has rich deposits of copper, gold, antimony and rare earth elements, it has not been able to tap these resources for economic growth as the economic decision making authority is fragmented, decisions are reversible, and accountability is absent, according to an article in The News International.
The article highlights that despite the abundance of these expensive minerals Pakistan has not been able to exploit them as there is no single authority that can give the go-ahead for mining. While a federal–provincial overlap fragments decisions in the country, courts also tend to freeze permits.
Regarding the power sector, the article highlights that Pakistan has around 46,000 MW of installed electricity capacity. Pakistan’s peak electricity demand is around 28,000–30,000 MW. Electricity tariff has gone up from Rs 20 per kWh range in 2020 to Rs 40 per kWh in 2025. Yet the lights still go out. It further states that this is due to the circular debt crossing Rs3 trillion. State-owned discoms post annual losses of Rs 500 billion. Total outstanding payments owed to IPPs are around Rs 1.2 trillion.
The article claims that while foreign investors says Pakistan’s returns are good, they lament that contracts are not enforced on time; arbitration drags on for years; courts issue ex-post stay orders; and regulators contradict ministries.
It also highlights that 64 per cent of Pakistanis are under 30. Pakistan’s working-age population (15–64) is expanding by about two million people every year.
“Yes, the demographic dividend exists. Yes, the private sector wants skills,” the article says.
It states that yet the dividend is not materialising because the curriculum is disconnected from labour demand; provinces and centre are misaligned; there is no national skills command; and there is no execution accountability. Labour markets are signalling demand but the state is not responding, the article states.
It further points out that IMF programmes can fix these problems as they operate through prices, taxes, subsidies and accounting identities. They do not fix decision speed, jurisdictional overlap or federal–provincial command. Then there is the missing budgetary command. Provinces spend; the centre borrows. Liabilities are centralised; accountability is diffused which, too, is command failure, said the article.
–IANS
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