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Institutional determinants of power sector reform in Pakistan

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  • Ullah, Kafait
  • Arentsen, Maarten J.
  • Lovett, Jon C.

Abstract

The electricity supply sector in Pakistan has performed poorly in recent years. Reforms were introduced in the mid-1990s to improve the sector, but progressed slowly with no significant impacts on pre-reform performance. This study uses new institutional economics as a theoretical basis to elucidate reasons for the failure of power sector reforms in Pakistan to make improvements. Interviews with 23 experts using Q-methodology generated 215 statements that were used as a Q concourse. Of these, 51 statements were selected for the Q sample and ranked by 34 respondents depending on their importance. Analysis revealed four important discourses on the determinants of power sector reform failure in Pakistan. These included weak governance structure, country and sectoral endowments, inefficient regulator and unspecified political institutions or unfriendly political contexts. The study recommends establishment of institutions that support a market based power supply sector and improvements to the contractual arrangements between stakeholders to reduce opportunistic behaviour.

Suggested Citation

  • Ullah, Kafait & Arentsen, Maarten J. & Lovett, Jon C., 2017. "Institutional determinants of power sector reform in Pakistan," Energy Policy, Elsevier, vol. 102(C), pages 332-339.
    • Handle: RePEc:eee:enepol:v:102:y:2017:i:c:p:332-339
    DOI: 10.1016/j.enpol.2016.12.019
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    7. Jan, Muhammad Zain & Ullah, Kafait & Abbas, Faisal & Khalid, Hassan Abdullah & Bajwa, Tariq M., 2023. "Barriers to the adoption of social welfare measures in the electricity tariff structure of developing countries: A case of Pakistan," Energy Policy, Elsevier, vol. 179(C).
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    10. Shazia Kousar & Saeed Ahmad Sabir & Farhan Ahmed & Štefan Bojnec, 2022. "Climate Change, Exchange Rate, Twin Deficit, and Energy Inflation: Application of VAR Model," Energies, MDPI, vol. 15(20), pages 1-21, October.
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