Pakistan’s Fuel Shortage Hinders Reform Progress, a Credit Negative
By Khalid Qayum
(Bloomberg) — Increased fuel imports unlikely to solve deepening fuel crisis and will further strain Pakistan’s budget, balance of payments, according to statement.
* Fuel shortages also reflect strained finances of state-owned
distribution cos and fuel importer, Pakistan State Oil, and
are a setback to sector’s progress on reforms
* Since June 2013, govt. has initiated reforms to address
power crisis; progress on implementing many of these
measures has been slow, owing to lack of political consensus
* Crippling power shortages are impediment to eco. growth,
since they curb industrial production and investment, while
imposing budgetary drains
* NOTE: Pakistan Power Shutdown Caused by Plant Tripped,
Minister Says. Link
* NOTE: Pakistan Fuel Shortage Crisis Forces Sharif to Cancel
Davos Trip
Add comment