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Pakistan's power sector is a major contributor to the country's macroeconomic and fiscal stress. It's a story of weakened grid demand, high capacity payments, persistent circular debt, and a generation mix that has evolved very differently from what policymakers originally envisaged...

☀️ One of the most striking recent developments is the rapid growth of distributed solar. But at the same time, Pakistan has added large volumes of LNG and imported coal capacity over the past decade, locking in fixed costs that are increasingly misaligned with actual demand and fuel affordability...

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