What is Circular Debt in Pakistan: Issues and Impacts [Article]

Power sector inefficiencies have cost this country significantly in direct budget costs in the last five years. In addition, growth has been slowed down by at least 2% per annum i.e., 10% lost growth in the last five years. Yet the problem is far from behind us. The restructuring and reform of the power sector has been held up for over two decades leading the costs to accelerate in recent years. The
important question that arises is “Why are we incapable of addressing such a big problem.” The problem requires careful study and research which can only happen if time and resources are devoted to the problem. With enough independent expertise and research for developing a body of knowledge on the required reform, a process of reform must be developed in Pakistan. There have been major
shortcomings at all levels of the reform spectrum which are split into three main areas:

1. At the policy level there is complete disarray between all entities involved. The Ministry of Water & Power, which is the main
policy maker of the sector has no roadmap set out for itself and is more reactive than proactive to power sector reforms which of
course is coupled by a lack of political will to help improve the system.

2. At the regulatory level there is an authoritarian attitude towards all entities involved. The regulator has failed to address or acknowledge problems of the power sector and is working in isolation.

3. At the entities level there is a complete breakdown of governance. Though they are being micromanaged by both the policy makers
and the regulator, the entities themselves have no aspirations of  moving ahead reforms and are happy to maintain status quo.

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Circular debt is one of the major issues in Pakistan. The Oil, Gas and Power sectors of Pakistan are the main sufferers of this giant dilemma to deal and manage the circular debt in an appropriate and suitable manner. The policy makers of Pakistan have been striving hard to find a way to solve this problem, but up till now they had not been able to find out an effective solution. Nonetheless, as a consequence of this, the circular debt in Pakistan as it is termedhas been circling around the three most important sectors of Pakistan, and the predicament is increasing day by day.

Circular debt arises when one of the two parties do not have enough cash to pay out its liabilities and pay the withholding payments to its suppliers.  This creates difficulty for the supplier to pay out its liabilities, which ultimately sets out an-unfathomable circle of debt liabilities in the economy.

In June 2011 the total circular debt reached to the level of more than Rs. 200bn, and in this year it is increasing by Rs.95 crore a day. It is a misfortune that mismanagement with regard of government owned power generation and power distribution agencies is one of the major reasons for a continuous increase in the circular debt of Pakistan. However a proper and cost effective management and organization of these companies would be able to reduce this debt position by a considerably higher level in the long run.

The significance of the management of the circular debt in Pakistan is not a secret any more. The government of Pakistan should try different types of strategies to critically fathom the core reason and find the solution that should be effective enough to positively deal with this critical issue as soon as possible.

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Thanks to http://www.pakonomy.com/2012/01/30/circular-debt-in-pakistan

Thanks to http://www.pc.gov.pk/hot%20links/2013/Final_USAID-Pakistan%20Circular%20Debt%20Report-Printed%20Mar%2025,%202013.pdf


Year 2011 in Photos – Year Reviews

Anything missing ? How was Year 2011 in your eyes ? Feel free to add.

Steve Jobs Win Posthumous Grammy Award [IT NEWS]

If you are wondering when did Steve Jobs release a music album to deserve a Grammy award, then perhaps you do not know much about Grammy.

Though, primarily known for music, Grammy awards are given for various categories. The Recording Academy announced the list of the recipients of 2012 Special Merit Awards.

Among the Lifetime Achievement Award recipients were the Allman Brothers Band and Diana Ross. Steve Jobs received the posthumous honor of this year’s Trustees Award for “outstanding contributions to the industry in a nonperforming capacity.”

The ceremony will be held on 11 February 2012, during Grammy Week. The recipients will be acknowledged at this year’s “54th Annual Grammy Awards” .

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Reference: http://theapplebites.com/steve-jobs-wins-posthumous-grammy

Mobile World Congress 2011: Most Buzzed-About Phones, Tablets Brands [InfoGraphics]

Mobile World Congress 2011 (MWC) wrapped up last week in Barcelona, and there were so many smartphone and tablet offerings at the show, you could get information overload just trying to make sense of it all.

Here’s an infographic that won’t necessarily show you which products were the best, but will certainly let you know which ones had gadget aficionados the most intrigued. Webtrends sorted it out for us, measuring the buzz of the event by calculating mentions on Twitter, blogs and other social media between February 13 and February 17.

Even though Samsung’s Galaxy Tab 10.1 was out-buzzed by the LG Optimus Pad, with the help of its second-generation Galaxy S II smartphone, Samsung was the top most-buzzed brand during MWC week, just like it was during CES 2011. Coming in second was Google (not surprising, due to all the talk about Android on smartphones and tablets), with HTC in third.

Breaking it down into days, Samsung and HTC fought it out on Monday for the lead buzz spot, with Samsung victorious at 32%. Tuesday, HTC fought back with with its 7-inch 1.5GHz HTC Flyer tablet, winning the day with 30.8% of the buzz.

Notice that while tablets grabbed 47.7% of the buzz, all those iPad competitors were still eclipsed by the 52.3% buzz for smartphones, which in the past have been the only buzzed-about device at MWC:

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Reference: http://mashable.com/2011/02/20/mwc-buzz/

Image courtesy: Webtrends.com

What the Hell Is It ? Pakistani Journalists in US Embassy Hosts Drink Dance Party [Pictures]

What the hell is it ?

See Mehar Bukhari and Saima Mohsin with US black men.

Are these media personalities who talk on TV programs and we trust them.

Mehar Bukhari was the anchor of the program “News Beat” on “Samaa” TV.

Can Supreme court and Honorable Chief Justice Iftikhar Ch. take the notice?

This homeland was made on the name of ALMIGHTY ALLAH and ISLAM is the religion.

We all are Muslims but where this media is going to take us?

Today, I am ashamed of being the part of this nation.

ALMIGHTY ALLAH forgive us and tell us the right path. (Ameen)

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