Ongoing Load-shedding

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Since the coalition government led by Prime Minister Shehbaz Sharif assumed office almost two and a half months ago, load shedding has affected the entire state. While there may be technical difficulties preventing an unrestricted supply of electricity to homes and businesses, the main cause of the country’s ongoing load-shedding is the government’s inability to refuel the various power plants as a result of rising oil prices and declining foreign exchange reserves. The rising cost of electricity only makes matters worse for consumers who already struggle with a shortage of power. Oil prices will inevitably increase the cost of producing electricity. The administration has set numerous dates to end the menace of load shedding in the country, but each deadline has come and gone without success. The problem is actually getting worse every day. Sadly, it appears that the government’s only plan to end the country-wide power outages for an extended period is hope. The government is hoping that the monsoon season, which will reduce electricity demand, and a slight drop in oil prices will allow for the government to refuel its power plants and run them at full capacity. All consumers, residential, commercial, and industrial, have been suffering more than ever in the meantime. While the lack of supply for home customers can only have a negative political capital impact on the government, the daily outages that commercial and industrial users are experiencing will also result in a decrease in government income. Naturally, fewer hours worked at small businesses and large industries result in lower-income and, thus, lower income taxes. It’s time for the government to come up with novel short-term and long-term answers.

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