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Robert Pirsig, in his bestseller, “Zen and the Art of Motorcycle Maintenance: An Inquiry into Values”, narrates a trick that people in South India use to catch monkeys. This trick, Pirsig calls “The South Indian Monkey Trap”, consists of a hollowed-out coconut shell chained to a stake. The shell has some rice inside, which the monkey can grab through a small hole which is big enough to let the monkey’s hand in but too small to let it out when his fist is full of rice. The monkey reaches in and is trapped — by nothing but his own value rigidity. He can’t revalue the rice. Nor can he see that freedom, without the rice, is more valuable. Consequently, the creature is captured, and the South Indians have been successfully employing this trick for centuries.

“The Monkey Trap” Concept in the Power Sector

Pirsig’s point is simple: Individuals and societies sometimes get trapped in their own value rigidities, opting for short-term gains when their long-term interests may be quite different. Much that one hates to relate an animal story to a human situation, it’s hard not to wonder if we may also be in a similar trap in the domestic power sector.

The power sector in Pakistan is facing a crisis that is causing irreparable financial losses to the nation. In Fiscal Year (FY) 2023 alone, the losses have exceeded Rs530 billion, and the circular debt has soared past the Rs2.7 trillion mark. Such massive losses are unsustainable and are detrimental to any business.

The situation calls for critical steps to control these losses. However, so far, the government’s response has been limited to meetings and press briefings, with no significant actions taken. These meetings are attended by bureaucrats and experts who lack a deep understanding of the complexities of the electric utility business. As a result, the power sector has suffered from ineffective solutions and empty promises.

A Crisis of Leadership and Governance

The power crisis in Pakistan is not merely a result of resource crunch, circular debt, waste by consumers, technical losses, or non-revenue recovery. These are just symptoms of a more significant issue, a crisis of leadership and governance. The government has failed to think beyond short-term gains and lacks a long-term vision for the sector.

As a consequence, the power sector institutions in Pakistan have become obsolete, corrupt, and inefficient. They no longer foster creativity, innovation, or initiative. This failure of leadership has stunted the country’s economic development, led to worker lay-offs, and deterred new investments. Individuals with the means are even leaving the country for better job opportunities abroad.

The Need for Systemic Overhaul

Power sector reforms are complex and long-term endeavors. Making bad decisions today can have long-lasting consequences for the nation. To save the power sector, the government must prioritize governance and initiate a systemic overhaul. This will require addressing institutional arrangements, executive leadership, management practices, organizational processes, and the sector’s culture as a whole.

The government must take essential steps to clean up the mess in the power sector. First, it should devolve the sector and allow for autonomy rather than treating it as an extension of its own domain. The government’s role should be limited to setting strategic objectives and policies. Second, hiring an international consulting team can help identify key issues and develop critical improvements for each power sector entity. Third, executive heads with vision and competence should be appointed through a transparent and impartial selection process. Finally, there should be a focus on reevaluating the efficiency and efficacy of organizational hierarchies, processes, and procedures to eliminate unnecessary administrative layers.

Challenges and Opportunities

Implementing these reforms will not be without challenges. The power sector worldwide is under tremendous pressure, with rising costs of generation, transmission, and distribution technologies. However, Pakistan has the opportunity to overcome these challenges and manage future ones with the suggested reforms. The government must prioritize the long-overdue reforms, remove obstacles posed by parochial and vested interests, and take bold steps to implement the necessary changes.

While Pakistan may face limitations in resources and funding, it possesses a talented and capable workforce. It is high time for the government to tap into this resource and mobilize it for the betterment of the power sector and the nation as a whole.

Source: The Friday Times