The inflation is fueling poverty in the country which could only be reduced by sustained growth on a consistent basis. Macroeconomic stability is necessary for the sustained economic growth but it is not sufficient to reduce poverty. Rather, it is the foundation on which to build a thriving economy. No single policy can completely address the needs of poverty reduction. Food-based interventions may play a supplementary and short term role in eliminating poverty. A multi-pronged approach is needed, which includes interventions to enhance incomes, Survey report 2011-12 says.
During 2011-12, energy outages in Pakistan continued to be the dominant constraint in its growth. The power crisis left thousand of people jobless and force to shutdown many industrial units. Estimated cost of power crises to the economy is approximately Rs.380 billion per year, around 2 percent of GDP, while the cost of subsidies given to the power sector to the exchequer in the last four years, 2008-2012, is almost 2.5 percent of GDP. During last four yeasRs. 1100 billion were given to the power sector as subsidy. The liquidity crunch in the power sector has resulted in under utilization of installed capacity of up to 4000MW. It has also affected investment in power sector.
Many people in the country believe that the power crisis is engineered to by vested interest in petroleum sector to pave the way for import of Liquefied Natural Gas. The government’s LNG Policy 2011 encourages private parties to develop LNG projects.