Haider Ali Shah

Haider Ali Shah

A Private Equity manager specialising in international capital. He lives in London and tweets @HaiderAShah

Let’s talk about Pakistan’s spiralling circular debt

Power-sector circular debt has become a subject of hot discussion as the media bandies the government’s efforts in securing emergency finance from external sources. Although various explanations of the cause and potential solutions to this crisis have been published in academic circles, very little of this has been understood by the population of Pakistan. Unsurprisingly, none of the discourse has translated into action at the policy level. Circular debt At its core, circular debt is the state’s outstanding financial obligations to Independent Power Producers (IPPs) for supplied power, and to vendors for fuel consumed by state-owned power plants. The problem For decades, the ...

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Goals for the incoming government: Tell us where all our money has gone

The last five years have only strengthened my position that although sound economic policy may not be the answer to all our problems, mishandling issues of public debt has the potential to break the fragile sovereignty that Pakistan stands on. I often hear about roti, kapra, makaan (food, clothing, shelter) and the plight of the vast majority of Pakistanis; the end of the energy crisis, reducing the national debt, handling the law and order situation, and tackling the double-digit inflation rate. These are all necessary steps to sustain us into the future, and I commend anyone in public office who dedicates their ...

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