How to resolve Dollar PKR devaluation problem and avoid IMF loan.
I think PTI Imran Khan’s strategy to focus on small producers has a lot of potential. Here is what can bring tabdeeli through massive generation of jobs and overcoming the foreign exchange issue of rising dollar and devaluation of rupee. I think experts in PTI with ability of out-of-the-box creative thinking must look at this proposal.
Solar incentives can create massive saving on the $10bn/yr oil-gas imports. It can create at least 2m home entrepreneurs and other supporting businesses along with pumping and generation of economic activity of Rs 4 trillion!
Instead of IMF bail out, PTI can go for a massive crowd funding investment in energy sector. Here is how:
PTI should give the same subsidy to home solar energy producers on self generation of solar energy and net metering equal to that offered to PPIs for energy generation from wind or gas. Government must ensure availability of low cost and high quality solar panels through Incentivizing their imports or their local production. I am sure at least 20 lac home owners can easily invest around Rs 20 lac each in solar generation for their homes with their surplus energy getting pumped into the grid. This is 20lacs x Rs 20lacs = Rs 4 trillion investment. It will generate 20 lac entrepreneurial jobs generated by home owners who have become self employed through this. In addition there would be at least 5 lacs to 1m support jobs of installers, maintainers, equipment traders, importers, suppliers. It will also say good bye to at least $4-5bn of imported oil n gas for energy sector. This is going to be a recurring saving and will substantially improve our balance of payment woes, strengthen the rupee, reduce devaluation. Furthermore, it will increase our self-worth, will reduce meddling of IMF and World Bank in the manipulation of our economy. We will also become resilient to single point of failures often witnessed due to the problems of distribution.
Who will lead the resistance to change. This is going to be Oil lobby who are going to scream and oppose this scheme. Oil and Gas Sector vested interests and IMF/World Bank type big lenders will be most worried and will try their bests to throttle the initiative.
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