In a move aimed at providing relief from the burdensome electricity bills, Pakistan Muslim League (N) (PML-N) leader and former Prime Minister Nawaz Sharif announced that electricity consumers in Punjab would receive a subsidy of Rs. 14 per unit on their August and September bills for up to 500 units. This announcement was made during a press conference yesterday, where Nawaz Sharif was accompanied by Chief Minister of Punjab, Maryam Nawaz. Sharif urged Prime Minister Shehbaz Sharif to devise a similar relief plan for electricity consumers nationwide. He praised Shehbaz Sharif’s earlier initiative of providing relief to consumers using up to 200 units, describing it as a commendable step.
Addressing a question, Nawaz Sharif attributed the current inflationary crisis to the very individual who, he claimed, is now speaking from behind bars. He argued that the founder of Pakistan Tehreek-e-Insaf (PTI) was responsible for bringing the International Monetary Fund (IMF) back into Pakistan, whereas during his tenure, the country had almost bid farewell to the IMF. Sharif recalled that during his time in office, the exchange rate was maintained at Rs. 104 per US dollar for four years, and the electricity bills for the poor were as low as Rs. 1,600, in stark contrast to the current Rs. 18,000. He lamented that the poor are now faced with the dilemma of either feeding their children or exhausting their salaries on electricity bills.
Sharif also highlighted that his government had successfully eliminated load shedding, and the interest rate was maintained at 5%, which encouraged investment in the country. In a gesture of appreciation, he commended Chief Minister Maryam Nawaz and urged Prime Minister Shehbaz Sharif to support Punjab’s solar panel initiatives. He also called on other provinces to focus on providing relief to the public, acknowledging the severe hardship caused by the ongoing inflation. He reiterated his famous question, “Why was I removed when the country was on the path to development?”
The reality is that the citizens, particularly those from the working and salaried classes, are deeply distressed by the exorbitant electricity bills. The government, constrained by IMF conditions, has imposed a barrage of direct and indirect taxes through federal and provincial budgets, supplementary budgets, and utility bills, stripping the public of their ability to live with dignity. Recognizing the growing discontent, Jamaat-e-Islami (JI) focused on the issue of electricity bills and Independent Power Producers (IPPs), staging a 14-day sit-in at Liaqat Bagh, Rawalpindi. JI leader Hafiz Naeem ur Rehman vowed to expand this protest nationwide. The government, sensing the potential escalation, formed a team of three federal ministers to negotiate with the JI leadership. Eventually, these negotiations, led by Liaqat Baloch on behalf of JI, resulted in a successful agreement. The government pledged to reduce electricity bills and review contracts with IPPs, prompting JI to suspend its sit-in.
While the PML-N leadership’s announcement of a Rs. 14 per unit relief for up to 500 units for two months may provide temporary respite to the people of Punjab, it is not a permanent solution to the problem of high electricity bills. The root cause lies in the 14 different taxes imposed on these bills, as well as the massive payments made to IPPs under capacity charges, which have been passed on to the consumers. In a worrying development, officials from the Ministry of Power Division informed the National Assembly’s Standing Committee on Energy that an increase in electricity tariffs is inevitable to meet payments to IPPs and prevent the accumulation of circular debt.
These harsh realities are fueling public discontent against government policies, with signs of upcoming protests by traders and various segments of society. Both the Central Association of Traders and the All Pakistan Anjuman-e-Tajiran have announced a nationwide strike on August 28, which has now been endorsed by JI leader Hafiz Naeem ur Rehman. JI has pledged to continue its strike and launch a long march until permanent relief is provided in electricity bills and the contracts with IPPs are revised. This situation is far from reassuring for the government. Moreover, Nawaz Sharif’s press conference can be seen as a subtle indictment of the current administration, as he contrasts the affordable utility bills and commodities of his tenure with the current economic hardships.
If inflation has quadrupled compared to Nawaz Sharif’s era, and if the poor, unable to pay their electricity bills, are being driven to suicide, the blame squarely falls on the current coalition government. The situation is exacerbated by the fact that PML-N’s coalition partner, Pakistan People’s Party (PPP), is attempting to pin the entire blame for inflation on PML-N, while PTI’s opposition rhetoric also focuses on PML-N. PML-N, precariously perched on the fragile edifice of power, finds its coalition partners chipping away at the very foundations of this structure. Indeed, while Nawaz Sharif, in consultation with Chief Minister Maryam Nawaz, has taken a significant step by providing relief to the people of Punjab, this temporary respite will only serve as a cold comfort unless it is transformed into a permanent solution. Until the country is freed from the stranglehold of IPP contracts, temporary relief measures will not be sufficient to stabilize the government.
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