8/4/2019 Energy Crisis - Its Bad Impacts on Our Economy by
Zaheer Uddin Qureshi
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Energy Crisis - Its Bad Impacts on Our
Economy
By Zaheer Uddin Qureshi
Energy crisis, as our economy face is not fortnight development.
It might have taken 7 to 8
years to be worse. It seems that when demand for electricity
started to increase due to
increase in population & uses of electronic appliances that
time our leadership lacked far-
sighted, planning & execution. Second factor that now made
this problem worst is debt circular.
At present our civilian leadership seems reluctant to take an
action against electricity thefts &
its bill defaulters, which is sole cause of debt circular.
Energy crisis not only triggerunemployment due to closure of
factories & low production, but also hit government
revenues.
When initially people are fired from jobs, they cause others
unemployed due to this
phenomenon is known as multiplier effects. Let me explain how
initial unemployment cause
further unemployment. When initial unemployed people dont have
income to be consumed it
reduces demands for those goods & service which likely would
have been consumed if they
were in jobs. Once demand for these goods & services
reduced, entrepreneurs would definitely
short labors due to low demands for products. The Question is
how government is going to
meet its revenue target of fiscal year 2011-12 which is 1950
billion, when people are losing
their jobs due to loading shedding ensuing decrease in
consumption? After 2010 flood whichaffected more than 20 million
people & forced government to reduced Public Sector
Development budget for rehabilitation purpose brought economic
growth to 2.4 %.This disaster
jammed our economy, yet we did not came out from recession, we
were pushed again to
recession again because of load shedding & borrowing of our
government from banking
systems that kept cost for borrowing high for private sector. If
we do not take reforms steps as
soon as possible then our economically condition beyond doubt
would be as same as Greece
face today. Government should take measures against electricity
thefts & its bill defaulters &
bring qualified & expert people in concerned department. It
also broadens tax net, which is
lowest in sub-continent below 10%, a part of that can be used
for the development of powerplants.
