IMF’s full cost recovery formula to devastate the economy

Islamabad:     The IMF’s formula to revive the power sector known as ‘full cost recovery’ will prove the last nail in the coffin of shambling economy, a business leader said Wednesday.
IMF wants the government to recover the full cost of power generation from honest consumers which are paying their bills well in time while the lender also want to burden the power consumers with the losses resulting from theft, incompetence, mismanagement and corruption, said Shahid Rasheed Butt former President ICCI.
Shahid Rasheed Butt said that the full cost recovery without reforms in the power sector amounts to exploitation of power consumers and rewarding the corrupt officials.
People are getting costliest electricity in the region and the power tariff is increasing steadily which will leave productive sector paralysed, he said, adding that masses are not responsible for the problems of the power sector.
Shahid Rasheed Butt said that once electricity was cheapest in Pakistan that has now become very costly as politicians, bureaucrats and big business groups have made fortunes out of this unfortunate sector.
Why the politicians who made shady deals with private power producers and managed to give them billions without proper justification are not being held accountable, he asked.

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