Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Pakistan Hit With Power Blackouts As It Struggles With Fuel Shortages And Technical Problems

Courtesy of ZeroHedge View original post here.

A once-in-a-generation inflation shock is rippling worldwide and has become a significant source of social and political instability in the weakest countries. Pakistan is the latest country to experience paralyzing inflation. 

Bloomberg reports almost a fifth of electricity generation capacity is offline in the South Asian country because some power plants struggle to purchase liquefied natural gas and coal due to record high prices. 

Pakistan's energy costs have doubled to $15 billion in the last nine months ended February from a year earlier. The country has struggled with purchasing energy products to fuel its power plants since the conflict in Ukraine exacerbated commodity shortages, sending prices to record highs. 

Miftah Ismail, appointed as finance minister by new Prime Minister Shehbaz Sharif, tweeted that 3,500 megawatts worth of power capacity are offline due to fuel shortages, and a similar amount is due to technical faults. The total capacity offline is 7,000 megawatts or about a fifth of the country's total generation capacity. 

The poor South Asian country is heavily dependent on imported energy, making it highly sensitive to price swings. 

"Pakistan's situation will not change in the near term since global dynamics are still the same.

High inflation has already led to a recent government change (so far peaceful). Still, it raises near-term policy turmoil even as the country faces fiscal challenges from soaring commodity prices. 

It could only be a matter of time before rolling power blackouts, soaring food and fuel prices incite unrest. This is already happening around the world in the weakest of countries. 

The tiny island nation of Sri Lanka in the Indian Ocean and Peru have already experienced unrest because of rapid inflation. It appears the dominos are already falling. 


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!