Prime Minister Muhammad Shehbaz Sharif has declared a bold vision to overhaul a system that has long hollowed out the nation’s core, affirming his government’s dedication to bringing about tangible change. Addressing a cabinet meeting, the Prime Minister highlighted the urgent need to address systemic inefficiencies, particularly in the energy sector, where over PKR 500 billion worth of electricity is stolen annually. He emphasized that making electricity affordable for agriculture is crucial, underlining the government’s broader commitment to national stability, even if it means making significant sacrifices.
In his remarks, Prime Minister Sharif recognized the strenuous efforts undertaken to improve the power sector, stressing that reducing production costs is essential to boosting exports and enhancing competitiveness. He pointed out that the cost of electricity plays a pivotal role in these efforts. The Federal Board of Revenue (FBR), he noted, remains a key priority for the government. Energy, power, and the FBR have been identified as sectors requiring immediate focus, with advisors appointed to ensure that necessary reforms are implemented.
Shehbaz Sharif, now serving his second term as Prime Minister, first assumed office in April 2022 for a 16-month period leading a coalition government comprising Pakistan Democratic Movement (PDM) parties, the Pakistan People’s Party (PPP), and the Awami National Party (ANP). As he steps into his role once again, the coalition’s composition has somewhat narrowed compared to 2022, yet his resolve to bring about change for Pakistan remains undiminished. Interestingly, the PPP continues to support the Pakistan Muslim League (N) at the federal level while maintaining its stronghold in Sindh. PPP Chairman Bilawal Bhutto Zardari, who served as Foreign Minister under Shehbaz Sharif in the previous administration, has also reiterated his commitment to Pakistan’s progress, recently instructing the Sindh government to tackle corruption head-on, even if it requires extreme measures.
Despite serious statements from both Shehbaz Sharif and Bilawal Bhutto Zardari on combating corruption, the promises made during the election campaign—such as providing free electricity up to 300 units—have largely remained unfulfilled, serving more as electoral slogans than actionable policies. The Prime Minister’s recent reaffirmation to overhaul a system that has eroded the nation’s foundation is a critical stance. He also revealed the staggering figure of PKR 500 billion lost annually due to electricity theft and expressed his views on the transmission system’s inefficiencies and line losses.
The Minister of Power, Owais Leghari, had previously set a deadline of April 23 to curb electricity theft. However, the issue persists, raising questions about accountability. The challenges of line losses and transmission system inefficiencies are not new; they date back to 2008. Since then, Pakistan has seen the PPP and PML-N governments return to power multiple times, yet these issues have remained largely unaddressed. After capacity payments, the most neglected aspect has been the electricity transmission system. While the Prime Minister advocates for cheaper electricity, the lack of adequate and affordable electricity continues to hinder the growth of industries, agriculture, and other sectors. The agreements with Independent Power Producers (IPPs), particularly regarding capacity payments, have become a significant burden on consumers. Although there is talk of renegotiating these agreements, no concrete steps have been taken, leaving ordinary consumers grappling with exorbitant electricity bills, which have driven many families to the brink, exacerbating social tensions and even leading to a rise in suicide rates.
The Prime Minister also highlighted the importance of the FBR, stating that without its revival and improved revenue collection, the country cannot advance. While he is correct, the FBR itself requires significant refinement. Economic experts like Shabbar Zaidi have pointed out that a significant portion of the personnel within this sector contribute to tax collection issues. Zaidi even suggested that it would be better for the country if these individuals were paid to stay home, rather than continuing in their roles. The salaried class, for instance, is taxed at the source before receiving their salaries and is further burdened by a complex tax return filing process that even well-educated individuals struggle to navigate.
The International Monetary Fund (IMF) continues to be seen as a savior by successive governments, with each program hailed as the final one, only for another to follow. It is well-known that the IMF operates under U.S. influence, and the U.S. maintains far more favorable relations with India than with Pakistan. The level of trust in the IMF is such that the national budget was crafted according to its directives, followed by additional taxes imposed at its behest. The IMF’s interference extends to price determinations, and Pakistan has laid all its data bare before the organization, with little concern about how or where this information might be used.
Reforming a system that has eroded the nation’s foundations is not impossible. It can be achieved with relative ease, particularly when nearly all major political parties, except for a few, are part of the government at the federal level. Provinces are similarly governed by coalition parties, with PML-N holding power in Punjab and PPP in Sindh. With such a broad base of political power, there should be no barriers to changing the decaying system. The leadership must act in the national and public interest, transcending expediencies, and fulfilling their duty to the people without hesitation.
#PMShehbazSharif, #SystemOverhaul, #ElectricityReform, #FBR, #PakistanPolitics, #AntiCorruption, #EnergySector, #EconomicReform,
