Fixing energy to fix growth.

Pakistan is facing a low-growth trap due to high consumption and low investment. The population is growing, increasing consumption requirements, while production remains stagnant. The reliance on imports and foreign currency to drive consumption hinders economic growth and leads to declining incomes. To unlock growth, affordable energy is needed, as it is crucial for increasing production and exports. The government's fiscal policy, which uses electricity prices as a tool, restricts growth by increasing taxes and charges on electricity consumption. To break this cycle, taxes and charges on electricity prices should be reduced, and the fiscal deficit should be addressed through direct taxation. Delinking electricity prices from fiscal policy and swapping foreign currency debt with local currency debt can further stimulate growth. [Extracted from the article]