- We have chosen this research project at the Think-tank named, Third Sector Study Center, Shanghai Jiao Tong University due to the uncompetitive energy costs and infrastructure delays found in Pakistan. During the investigation of energy and infrastructure projects in Pakistan, this case study has shown policy gaps from the perspectives of the local Chambers of Commerce and Industry (CCI) nationwide. Our team did an in-depth analysis of energy and infrastructure policies. Twenty-two CCI organizations participated in this study to record their views.
- Three policy assessment concepts evaluated the progress and impact of current projects with the help of local evidence. The cost-benefit (i.e., for efficiency of investments), cost-effectiveness (i.e., for the effectiveness of investments), and sustainability (i.e., for long-run and eco-friendly outcomes) served as indicators for policy assessment in the proposed framework to identify policy gaps along with potential remedies. These concepts portray the New Public Management (NPM) style of evaluation as it covers the significance of both the private and public sectors. The study identified alternative indigenous resources from the local policy debates that could have been a part of an existing plan of action of the Government of Pakistan (GOP).
- The findings indicate a few limitations under the energy policies for achieving international commercial competitiveness. There is an expensive electricity generation in Pakistan from the overall common-pool energy mix as compared to other regional regimes. The cities with specific installation requirements of transmission networks to remote sites rely heavily on electricity imports or fuel energy. The connections between the national energy grid and all territories are absent. Revision of agreements with Independent Power Producers (IPPs) is an urgent requirement as all outsourcing costs are not consumable due to the lack of transmission networks. Need for investments at the appropriate physical sites to save the environment and move toward renewable and Clean Development Mechanism (CDM) policy approaches as soon as possible with the CPEC energy portfolios. These policy gaps explicitly reflect the need for more collaborative inputs during policymaking from business advocacy forums.
- The gaps in infrastructure policies include delays in the optimization of physical route connectivity between the specific city and village jurisdictions as well as a preference for investments to connect specific commercial city sites with the overall CPEC routes. There is a need for speedy execution of the proposed SEZs that would serve as the actual growth engines alongside the affordable commercial facilities and financing for small and medium-scale businesses. Delays in planned infrastructure implementation cause the cancellation of many joint ventures in Pakistan, especially the small towns where potential resources are significant without physical access. The balance of payment is in negative value due to these issues for commercial activity.
- The local business community must be taken on board for short-, medium, and long-run policy advisory to the national departments and relevant ministries striving for economic development in Pakistan. These measures are inevitable to have synchronized policies for the CPEC initiative with the collaboration of commercial stakeholders.
- Energy departments may legalize captive power generation at remote locations to avoid electricity import at higher prices. For instance, many private enterprises are willing to make public-private or private-private partnerships in the energy sector at distant places where networks deprive connection with the national energy grid. This strategy is productive to save costs until the long-run integration of all remote sites with national power plants by 2030. The agreements with IPPs need proper revisions where necessary to avoid high-cost energy shifting toward consumers and industries. The situation would become worse without policy adjustments until 2030. The low confidence of the local business community would hurt development opportunities in the CPEC initiative.
- In terms of infrastructure development, the relevant construction departments should consider the deviation of estimated returns of infrastructure initiatives in the case of delays and procrastination due to bureaucratic negligence. The involved Chinese enterprises should advocate efficiency and effectiveness in different stages according to the initial plans of these projects. The relevant stakeholders should ensure the credibility of the outsourcing agents (or the benchmark third parties) for meeting the policy objectives. The local government should award the tenders based on well-planned policy guidelines to avoid political delays and unrest among the general public. Lastly, environment and climate standards need fulfillment in all infrastructure implementations as their consequences affect other developments gradually, and the sustainability of these development initiatives suffers.
