Prime Comment #46

Deregulation Before Privatisation: Fixing Pakistan’s Power Market

The Government of Pakistan has begun the phased privatisation of three state-owned power distribution companies to minimise sector losses and address recurring debt. Privatisation can certainly enhance efficiency when firms operate in a competitive and well-functioning market. However, Pakistan’s energy sector continues to be operated in a single-buyer structure, with strict administrative controls over pricing, market access, and electricity transactions....