A short note on the privatization of Pakistan's DISCOs.
DISCOs are in a death spiral. Every year they sell fewer and fewer units. Every year the cost per unit goes up. Every year more customers leave for solar. And at Rs 38 a unit and above, who can blame anyone for going solar?
Privatization is a good step. But not with the current model. The the only way it will be a success is to let DISCOs generate their own electricity and price it competitively. A DISCO that can produce cheap power should be free to pass those savings on to the customer, not forced to charge the same national rate as everyone else.
Whether it is wind, solar or anything else. As long as it is cheaper than the National Tariff, DISCOs must be able to invest in energy generation and thus be able to offer consumers cheaper electricity. If this is not done, the death spiral of lower units consumed leading to higher unit costs will continue.
Two caveats:
1. The Government cannot let DISCOs self-generate everything, as they have capacity payments to make. So the practical solution is a tapered ratio. Let DISCOs produce a set share themselves, say 20-30% to start, growing as old IPP contracts expire.
2. This will get political the moment one province's DISCOs offer cheaper electricity than another province. Im honestly not sure how to solve this issue but the question is simple: Does the Government want a functioning power sector, or a politically convenient one?
In short:
Cheap electricity should be the goal, not something the Government stands in the way of. Without pricing freedom, whoever buys these DISCOs is inheriting a shrinking customer base tied to a rate they cannot control. That is not the privatization of a business. It is the privatization of a death spiral.
Wrote about @AbdulElSayed for @PRNews: the politics of unfiltered authenticity, conviction, confrontation and refusing to shrink our identities to make others comfortable. Six lessons for communicators on the power of being unapologetically ourselves.
https://t.co/233hJFzVA5
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Sad to see this but not surprised. Mental health is culturally downplayed and dismissed. The more we speak about it the faster the stigma will disappear. #MentalHealthMatters
Disturbing: Pakistan’s first national mental health survey finds nearly 1 in 3 adults (32%) live with a diagnosable psychological disorder. 1 in 5 have PTSD, over 1 in 10 have depression.
After launching the Tareen Oxford Scholarship, people suggested funding undergrads too. So we reached out to LUMS to be make it happen.
Every year, we will fully fund six undergraduate students from South Punjab, three young women and three young men.
Investing in people is the best investment. More to come IA.
#SouthPunjab🚀
Congratulations to this year's Tareen Oxford Scholar, Ali Hassan from Muzaffargarh. At just 21, Ali completed his law degree at LUMS on a full scholarship and is now heading to my alma mater, @KelloggOx.
MA I was so privileged to complete my master's at @UniofOxford, and I intend to pass that privilege on to students from South Punjab every year IA 🙏🏼