The Prospects of IPPs in Pakistan's Electricity Sector: A Comprehensive Analysis
The energy sector in Pakistan has historically been fraught with numerous challenges, including power shortages, high transmission losses, and an over-reliance on imported fuels. Amid these challenges, Independent Power Producers (IPPs) have emerged as key players, providing significant contributions to the country's energy mix. However, their involvement has controversy and challenges. This extensive analysis aims to explore the prospects, benefits, challenges, and future outlook of IPPs in Pakistan's electricity sector. Introduction Independent Power Producers (IPPs) are private sector entities that generate electricity and sell it to utilities and end-users. In Pakistan, IPPs were introduced in the 1990s as a strategic response to severe energy shortages. The government aimed to attract private investment into the energy sector to enhance generation capacity and reliability. Over the years, IPPs have become a cornerstone of Pakistan's electricity infrastructure, contr...