Breaking the Culture of Nonpayment: A Qualitative Analysis of Utility Intervention in Pakistan

Abstract

Reliable electricity access is vital to economic growth, though financial challenges can undermine service quality. In Karachi, Pakistan, the local utility intervened to reduce losses and improve bill revenue recovery. The intervention increased budgets to improve infrastructure, provided staff incentives, and expanded customer engagement activities. We employ qualitative techniques to study managers’ and customers’ perceptions of the intervention and the mechanisms driving its effects. While managers credit the multi-pronged nature of the intervention for increasing trust and mitigating the effects of the COVID-19 pandemic, customers report no increase in trust and focus primarily on infrastructure improvements.

Zhenxuan Wang

Assistant Professor

My research interests lie at the intersection of environmental and energy economics, climate policy, development economics, and public economics.