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Energy crisis costs two percent of GDP every year

Every year, the prevailing energy crisis in Pakistan is taking away 2 percent (or Rs458 billion) of the economy, despite the government has spent Rs1.4 trillion as subsidies on the sector in the last five-year which accounts for 6.11 percent of the total volume of the economy.

Federal Finance Minister Muhammad Ishaq Dar while launching the Economic Survey 2012-13 here said, “We have estimated that Pakistan is losing 2 percent of GDP every year due to energy crisis. And we are working on this issue to solve it as soon as possible.”

There exists high correlation between growth rate of GDP and that of energy consumption. Historically, during the periods of high growth rate of energy consumption was followed by high growth rate of GDP, conversely periods of lower growth in energy consumption caused lower growth in the GDP.

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