{"id":162316,"date":"2025-11-27T10:45:09","date_gmt":"2025-11-27T10:45:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/162316\/"},"modified":"2025-11-27T10:45:09","modified_gmt":"2025-11-27T10:45:09","slug":"imf-report-exposes-how-pakistans-energy-crisis-is-rooted-in-mismanagement-and-political-interference","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/162316\/","title":{"rendered":"IMF report exposes how Pakistan\u2019s energy crisis is rooted in mismanagement and political interference"},"content":{"rendered":"

Home<\/a> \u00bb General<\/a> \u00bb Business<\/a> \u00bb IMF report exposes how Pakistan\u2019s energy crisis is rooted in mismanagement and political interference<\/p>\n

\"IMF<\/a><\/p>\n

New Delhi, Nov 27 (SocialNews.XYZ) Pakistan\u2019s long-running energy crisis has once again come under global scrutiny, this time through a hard-hitting report by the International Monetary Fund (IMF).<\/p>\n

The latest Governance and Corruption Diagnostic Assessment: Pakistan (November 2025) paints a troubling picture of how the country\u2019s power and gas sectors have been dragged into deep debt because of political patronage, weak oversight, and decades of mismanagement.<\/p>\n

At the centre of the crisis is Pakistan\u2019s circular debt — a massive financial burden that has grown so large it now threatens the country\u2019s economic stability.<\/p>\n

The IMF says this debt is not the result of bad luck or global conditions, but the outcome of decisions made by those in power.<\/p>\n

According to the report, the energy sector has become a \u201ccrime scene\u201d where political connections often matter more than competence.<\/p>\n

The IMF highlights how the leadership of key regulators like NEPRA and OGRA is frequently chosen based on connections rather than merit.<\/p>\n

Instead of bringing in new talent, extensions are often granted repeatedly, especially in OGRA, allowing the same officials to continue without accountability.<\/p>\n

In some cases, one official holds two top posts at the same time, weakening checks and balances and undermining the very purpose of regulation.<\/p>\n

The government\u2019s use of supplementary grants — funds released outside the regular budget — has also raised alarms.<\/p>\n

The IMF notes that in 2023\u201324, every rupee of these extra funds went to the power and petroleum sectors.<\/p>\n

In earlier years, too, a large share of supplementary spending supported the same troubled sectors.<\/p>\n

The report warns that such spending bypasses Parliament and weakens financial discipline.<\/p>\n

The country\u2019s state-owned enterprises (SOEs), including electricity distribution companies (DISCOs) and gas companies, are another major source of losses.<\/p>\n

Despite earning over 13 trillion rupees in revenue, federal SOEs reported a net loss of 30 billion rupees in 2024.<\/p>\n

The IMF says these losses are driven not only by inefficiency but also by widespread theft and political interference.<\/p>\n

Powerful groups often use electricity and gas without paying for it, confident that the government will absorb the losses.<\/p>\n

Pakistan\u2019s growing stock of government guarantees — now at 3.4 trillion rupees, mostly linked to the power sector — is also a serious concern.<\/p>\n

These guarantees are potential liabilities that could become immediate obligations if state-owned companies fail to pay their dues.<\/p>\n

The IMF warns that such risks leave the government vulnerable and increase the chances of future bailouts.<\/p>\n

Even the Special Investment Facilitation Council (SIFC), which the government promotes as a key reform body, receives a cautious mention in the report.<\/p>\n

The IMF says its broad powers and immunity could lead to misuse unless transparency is ensured.<\/p>\n

Source: IANS<\/p>\n

\"IMFAbout Gopi<\/a><\/p>\n

Gopi Adusumilli is a Programmer. He is the editor of SocialNews.XYZ and President of AGK Fire Inc. <\/p>\n

He enjoys designing websites, developing mobile applications and publishing news articles on current events from various authenticated news sources.<\/p>\n

When it comes to writing he likes to write about current world politics and Indian Movies. His future plans include developing SocialNews.XYZ into a News website that has no bias or judgment towards any.<\/p>\n

\nHe can be reached at gopi@socialnews.xyz<\/a><\/p>\n

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