The Conundrum of Circular Debt

CASS Working Papers on Economics & National Affairs, Working Paper EC011ATUC, January 2020

30 Pages Posted: 29 Jan 2020

See all articles by Amna Tauhidi

Amna Tauhidi

Centre for Aerospace and Security Studies (CASS)

Usman W. Chohan

UNSW Business School; Critical Blockchain Research Initiative (CBRI); Centre for Aerospace & Security Studies (CASS)

Date Written: January 3, 2020

Abstract

This paper attempts to study the dynamics of circular debt and its value-destructive consequences for the public by focusing on the case study of Pakistan. It examines how headwinds faced by developing economies due to non-natural energy crises is evidence of the fact that there are flaws and inconsistencies on the part of national stakeholders (public value agents) in keeping pace with the demand-supply requirements of power services. This inability to manage the public’s needs, a shortage of power generation from the back-end, and technical as well as political problems give rise to a vicious cycle of circular debt. The debt is being accumulated at the cost of the state’s social and economic stability. This implies that circular debt is a wider problem of public value creation, which must be addressed through a concerted and joint effort of public value agents.

Keywords: Pakistan, Stability, Energy, Crisis, Governance, Public Value

Suggested Citation

Tauhidi, Amna and Chohan, Usman W., The Conundrum of Circular Debt (January 3, 2020). CASS Working Papers on Economics & National Affairs, Working Paper EC011ATUC, January 2020, Available at SSRN: https://ssrn.com/abstract=3513225 or http://dx.doi.org/10.2139/ssrn.3513225

Amna Tauhidi (Contact Author)

Centre for Aerospace and Security Studies (CASS) ( email )

Centre for aerospace and security studies
Old Airport road, chaklala cantt, Rawalpindi
Punjab 44000
Pakistan

Usman W. Chohan

UNSW Business School ( email )

UNSW Business School
High St
Sydney, NSW 2052
Australia

Critical Blockchain Research Initiative (CBRI) ( email )

Centre for Aerospace & Security Studies (CASS) ( email )

Islamabad
Pakistan

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