(WSJ) Pakistan’s Reliance on Chinese-Built Power Plants Is Strangling Its Economy

WSJ When Muhammad Imtiaz received an electricity bill of over $120 last summer, he panicked. The bill, for June and July, was all he earns in a month of ferrying passengers on his motorbike in the scrappy suburbs outside Pakistan’s capital Islamabad.

In his two-room home, where he lives with his wife and four children, he only has a fridge and lights. He runs two fans in the summer months when heat can exceed 110 degrees Fahrenheit.

“Should I give my rent, pay the electricity bill, or buy food for my children?” said Imtiaz, who has racked up $3,000 in debt. His family has one meal a day: watered-down lentils with flatbread. A decade ago, Pakistan, cripplingly short of power, turned to Beijing to build more than a dozen coal, solar and hydroelectric power plants as part of China’s huge infrastructure push in the country.

Now a series of policy mistakes by Islamabad means that Pakistan has enough electricity and more—but, due to the huge debt owed to China, few can afford it. The crisis is overwhelming Pakistan’s fragile economy, throwing millions of households into misery, shredding government finances and shutting down industry.

Read it all.

Pakistan’s Reliance on Chinese-Built Power Plants Is Strangling Its Economy—Pakistan turned to Beijing to solve a crippling energy shortage. Now, crushed under debt and sky-high energy prices, its economy is diving.@SaeedShah https://t.co/fVY63hSYHmhttps://t.co/fVY63hSYHm

— Jonathan Cheng (@JChengWSJ) December 4, 2024