Why is electricity expensive? | Smuggling of dollar | Demonetizing currency | Ammar Khan | Ep 171
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- Опубліковано 22 тра 2024
- In this episode, Uzair talks to Ammar Khan about the ongoing electricity and dollar crises in the country. We also touch on ways to resolve these issues and why they are linked to competence and willingness to make decisions.
Ammar has written extensively on these topics and you can read some of his pieces using the links below:
- www.atlanticcouncil.org/blogs...
- www.thenews.com.pk/print/1104...
- www.thenews.com.pk/print/1106...
Chapters:
0:00 Introduction
1:30 Understanding the power crisis
17:34 Dollar rate and smuggling
26:30 Demonetization and disrupting the system
35:14 NICVD and healthcare
Ammar sounds truly frustrated at this point. So are people. The incompetence is next level!
Excellent podcast,The only thing stopping pakistan from coming out of crisis is the lack of will and vested interests in all sectors of the economy.
So interesting, just phenomenal. Thoroughly enjoyed every moment of it. Special thanks to Wajahat S. Khan for introducing you two through his vlog. He has an amazing guest list.
Can you please upload this video in parts so that we can share these on social media platforms.
Secondly, kindly make playlist of your podcasts like differentiating them on the economics or social issues
Love it when you two are together.
im truly laughing like crazy on the 26 minute point! agar logo ka faida hoga tou state ka nuksaan ho ga! 😂😂 yeh baat summarizes all govt activities in the best way!
My take from this is that our bureaucracy is incompetent. Reason is that its entire structure is wrong. We intake people of qualifications, and after selection, they are deployed without regard to their qualification. Often, a person with a degree in English literature will get deployed in Finance or Energy ministry. So what can one expect from them??
In India 110 cc bike give avg 60-80 kmpl..pak 125cc avg around 40-45kmpl..this diff is around 50-90%..your local bike brand don't change shape or anything but your govt should pressurize Honda for more refined and advance engine,don't change look but must change the engine..and Honda totally capable of doing that,they have biggest portion of pak market..by this people will get less petrol bill and govt will save good portion of dollars on oil import...
They should ditch Honda and get Bajaj and TVS.
Pakistanis still driving bikes of 80s and 90s era.
That is not how the market works. That would increase the upfront cost of the bike.
E-bikes are the future
false.
in India
110cc Honda gives 67kmpl
125cc Honda gives 50kmpl
Can you do a similar episode on how countries like Bangladesh, South Korea, Singapore and UAE evolved over time. How did they overcome their own versions IPP-type, mass transit, Healthcare etc problems? Broad question, I know...
Were they also rural and run by Chaudrys and Waderas? Fauj? Seems like this is Pak's main problem. People running the show who dont know or dont want to know how to run the show. 🤔
@@FaisalKhan-wf8ysyes they used to be ruled by them. Mob bosses and syndicates too. Read history of these nations and you would see that they were at their worst at one time. Stop living in oblivion and start studying some history
Excellent talk n content. interesting all local speakers. Thank u guys.
In India we call it Two Part Tariff system
The Capacity or fixed component comprises
1. Return on Equity. Equity is usually 30% of project cost and ROE is about 14-16 %.
2. Depreciation by straight line method over 20-25 years. The depreciation goes to repay loan.
3. Interest on Loan which is a pass through at actuals and keeps reducing over the life of plant.
4. O&M charges
5. FERV (Foreign exchange rate variation on repaid loan)
I guess the FERV is causing Capacity charge to spike because the $-Pk Rs exchange rate increase
Endia, tea is fantastic
@@explorerfoxywhen fauj serves tea to enemy its always fantastic. Coward army good for serving tea 😂😂😂😂
This is perhaps the best UA-cam channel on actual wealth of economic issues but alas no views. This is the the where the problem lies , ignorance , whether for the public or the policy makers.
It is always been an informative and learned discussion with Ammar Khan. I wonder why these type of educated and learned people are not made Finance Minister of the Country to improve the economical situation of Pakistan, who actual understands the problem and have capacity to deliver.
Because they do not have people's support.
Excellent discourse
For reference electricity is traded at an average price of Rs.7 on Indian Energy Exchange. At home prices are Rs.7-10 per unit, depending on amount of consumption.
The electricity cost per unit for an average household in Mumbai is around Rs. 8/unit. If you take the current dollar rate, Ammar is correct, apples to apples an affordable rate would come to around Rs. 30/unit in Pakistan.
This guy, Ammar Khan is brilliant.
Thank you uzair bhai for doing podcast in Urdu ❤
I would love to see some data or statistics in comparison with pervious years. So we can get a clear picture how things are going
Very good knowledgebl person Ammar
❤❤❤
Modi government eliminated subsidy on diesel and petrol but number of cities that had metro went from 5 to 20 and kilometers of metros have gone up 3 fold. Additionally railway freight infrastructure has seen a huge spike along with electricification of railways. This reduces amount of diesel used for transport. Also load shedding has almost ended in most tier 1 through tier 3 cities ending diesel being used in infrastructure. There is also a push on electric buses in metropolitan cities like Mumbai and Delhi to cut down import of oil.
We haven't faced any type of load shedding industrial or domestic in Ahmedabad for over a decade. Industries can operate 24x7x365. This is progress !!!
Hmm, but people in Karnataka opposed it and voted against it. Also, there has been another habit of now providing free electricity.
Ye Misr ke general Ammar ke shaan main Amnar naam rakha hye?
This guy is legit
Is it Pakistan Government that ignorant towards its people? really? Mr. Amman said in the start its " nalayaki"! Is it that simple and if yes, its really bad, people are dying over it.😢
Yhe bhai ne toh jan dhan account aur demonetisation ka formula apoly kar diya.. for which pakistan was criticisizing India
Demonetisation was one of the best decision of Modis govt. The sane ones in Pakistan didnt criticize the policy, (the masala journalists and commentators, should be ignored anyway, because they just want to get more views). The only thing bad, was the implementation,(from what we have heard from Indian media), that banks ran out cash supply to replace it, and the long lines there due to this. But i think this was an unavoidable consequence, to stop the black money from scaping the hands. If your govt had made preparations for it, the bells would have rung at the rich and the powerful who could have scrambled to aave their illegal assets before the law would have implemented. So all in all was a very good decision.
And I believe this was followed up by digital banking push, which pushed people in india to utlize digital banking.
❤
Uzair may check out that the capital cost comparision of coal power plants in pakistan and India. I find it is 50% more than India. In India, plants are awarded on final cost/unit to customer. Autonomous Electricity regulatory board decides tariff. Finally surplus electricity iis sold through auction on electricity-exchanges real time, and on least cost basis. Therefore, competitive installation, generation and supply.
Bhai audio pr Kam kryn ..... awaz bohat slow ati hy ....
What good are the power plants if they dont have fuel supply linkages. Problem with Pakistan is that the fossil fuel powered plants dont seem to have fuel supply linkages. In India the power plants have both the fuel supply linkage as well as Power purchase agreement with the buyer of that power. That allows power plants to run at good power availability factor as well as good plant load factors.
pakistan's exports to two of the most populous markets i.e India and China are a paltry 3 billion dollars approx.
A population of approx 3 billion people which is 40% of humanity living on this planet, both pakistan's neighbours.
And on top of that, your biradar muluq china gives you a 10 billion dollar worth of Current account deficit. Yeyy!!
Disagree with Ammar on public transport being a substitute for motorcycles, even with orange line in Lahore, chinese apprehensions on the project was the motorcycle penetration in the city, where the bike was also a semi liquid asset.
Everything else is solid.
Cost of Electricity in Mirpur is Rs 2.5 per unit.
👍🏼🇵🇰
I find the argument in favour of capacity payment very weak. It essentially said that govt gets most of it back as it's the owner of most of the plants. Does that apply to the dollar component of that, does that really go to the govt? I don't think so , please correct me if I am wrong on that. Most of the debate I have heard is about the pressure on Forex due to these and how it affects the electricity rate with each step of devalution.
Also. For transparency purposes, it will be great if you mention any possible conflict of interest your guests may have. So for example, does Ammar give consultancy to any power sector corporate player? I am not suggesting any malice, and I really like his input on these debates but if such is the case that should be clarified. I expect that you would do that anyway but thought it's worth highlighting as why wouldn't our players not use Ammar, he is brilliant!
Hi Uzair, love from India. Would like to konw do you know/follow any indian youtube channel that make such informative videos on economy.
Amitsen Gupta for Geopolitics
There are knowledgeable people like ruchir sharma , ashoka mody, raghuram rajan etc
There r hundreds,,, follow stock traders
It's really not rocket science, just go for solar panel farm. As the UAE n more competitors. The banking system of Pakistan is really backward and weak, due to which companies like PayPal don't want to step in and services like easy paysa are flourishing. The bank should in reality only check the id card of the residents, local nationals and verify it with the local authority/police office. Max 2 days verification check. There are many issues but atleast the basic necessecity should be met for the residents. Another issue is there is just too much mafia involved.
And the security for ppl and their assets is next to nothing specially in karachi. How is it that in lahore you can easily go about with a nice phone but in karachi it will be robbed in daylight. There are many things that needs correcting. Another huge issue is that no one picks up, is that if you move to punjab from sindh, u need to prove yourself for any kind of govt benefit. The id card does not make a difference as you are classed as 2nd citizen and the service is only for punjabi. And not any other pakistani. Same situation with the jobs. Where as in karachi, things are much relaxed.
On another topic, textile Mills have bin closed down, even we have the best cotton around
Its still not as easy! The solar systems are not 100% realiable and uptime. The problem is in how contracts were written with suppliers/plants.
@@nacpatil I don't know the technicalities of it. But we have China next door to help and ample sunshine. The new solar panels are intelligent . Tech has evolved
Pakistan has electricity price of 55 to 65 rupees per kwh Pakistan. In Indian Punjab, electricity by govt is bought at 2.5 Indian rupees per kwh = 9.25 Pakistan rupees per kwh. While Indian punjab govt give 300 units of power subsidy per month to every family. After 300 units we had to pay 6 Indian rupees per kwh = 22 Pakistan rupees 😅 See level of competence and governance in India vs Pakistan
These subsidies are the cost of healthcare, education from govt hospitals/ schools. People have to spend on pvt education and healthcare, because govt provided services are pathetic. I have lived in W Europe/ UK for the last 30 years. We pay market rates for gas and electricity, but get top quality healthcare and education from govt.
@@Dankelkar UK NHS has failed. Long w8ing lines for patients. Many of my known died w8ing for their turn for surgery in NHS. It is truly world class service. Even UK citizen doctor died bcoz she was on w8ing line 🤣 Free electricity to certain limit is good. Problem is corruption. Often Govt buy expensive units of electricity due to kickbacks from powerplant owners and then give subsidies which resulted in fiscal deficit. For example, Indian Punjab Akali BJP govt was buying per kwh at 8 Indian rupees but AAP party in Punjab buying electricity at 2.5 Indian rupees. So see the difference. Real issue is corruption and good governance. As a electrical engineer, I can say AAP is doing really good work in Indian Punjab.
NHS has not delivered in some pockets. It gets a lot of criticism because the expectations ate very high.
The trouble with upper class Indians is they only think of their perspective. 1 billion Indians earn less than 1000 USD per year. For them a system like NHS will be any day better than unaffordable pvt healthcare.
@@gigachad_6862 How many children are stunted in the UK? How many of them do not get a proper education in the UK? How many women die in the UK due to child delivery?
You are comparing elitist things like surgery with basic healthcare. Strange. So providing free electricity in the UK and closing the NHS would have saved life of your loved ones. Then why your loved ones are in the UK, ask them to move to Indian Punjab.
@@Dankelkar AAP has done good job in punjab and Delhi. BJP Congress and other regional parties has f@cked up India.
Trying to understand the single buyer model explained at ua-cam.com/video/PCXz5Y0ABZA/v-deo.htmlsi=XYczG6B5x1hWw9_Q&t=383 . IIUC, it sounds like there's a monopoly on the buyer side (and not the power generation side). Shouldn't that in-fact lower generation costs (because the single buyer has a higher ability -- in theory at least -- to negotiate better prices?). What did I miss or misunderstand?
Half of Pakistan's energy output is apparently being used to set Ammar's perfect hair. (He should run a haircare channel, kaafi dollars milengay)
Meanwhile, Uzair is helping the US reduce their emissions
😂 haha great comment.
That hair is using lot of grease (oil byproduct) and lot of hair dryer.
Did he just say the government of Sindh does really good stuff in public transit infrastructure 😂😂😂
I guess Ammar has read thoroughly about India's demonitisation, Jan Dhan Yojana (Bank a/c for all) and Digitization of Economy - And speak about that without missing a commas and full stops.. But Pakistan has Jasba for Jihad.. nothing for thinking about thier own citizens..
In fact, the private sector is not competency to luft the economy.. TCS, HCL, Wipro, Infosys kick start the IT business when there wasn't any know how in India and not much support from Indian Govt. Isle kehte hai Jasba
Well don't use the word ..... for capacity charges but please don't justify it. It's a pariah for sure.
Uzair, I am awestruck by your intelligence and your analyses on various issues related to the economy.
Please get a better mic or something. It is always a horrible experience listening to you, especially when I am trying to listen to the audio versions of your podcasts while driving.
نا اہلی کا کیا حل ہے؟
Poor ammar is sick of these discussions…
22:35 Have been freelancing for the past 13 years. Now feel sad that all my saving is in PKR, lol.
And yes, noone knows how freelancing works. Out new IT minister’s recent blurp is a prime example.
Why did you accept payment in pkr bro? I have done freelancing for around 3 years and always received payment in USD. Only once I did freelancing for African country and they were not ready to do it in USD so I requested them to do payment in ETH. 😊
sorry for the ignorance, but what is the IT minister's new blurp?
Pakistan should double export of women to China and find out new market like India