The interim Prime Minister, Anwaarul Haq Kakar, has stated that the government is actively seeking solutions to address inflated power bills while remaining in compliance with agreements made with international financial institutions. While negotiations with lenders are ongoing, the government is also attempting to avoid drawing the ire of the International Monetary Fund while addressing the concerns of citizens regarding excessive power bills.
The country of Pakistan is currently facing a number of economic challenges, including rising inflation, a depreciating rupee, and declining market confidence. Recent protests have erupted across the country in response to the inflated power bills.
Caretaker Finance Minister, Shamshad Akhtar, recently informed senators and electricity consumers to “manage their expectations”. Due to limited fiscal space, the country is unable to offer any subsidies or relief measures. The government is struggling to find a balance between meeting the financial obligations set by international financial institutions and addressing the grievances of its citizens.
In a meeting with journalists, PM Kakar acknowledged the protests against exorbitant power bills, but attributed the magnification of the issue to political parties preparing for the upcoming polls. He emphasized that the interim government has no hidden motives or ambitions to exploit the poor and that such thoughts should be dismissed.
PM Kakar referred to the 1990s, when load-shedding became a major problem, leading the government to enter into contracts with independent power producers (IPPs) to increase power production. However, the repercussions of these contracts, such as paying surcharges, were not fully realized at the time. The prime minister highlighted problems in transmission systems and the bill recovery process.
According to PM Kakar, while power bills were being burned in one part of a city, electricity was being stolen in another part. The prime minister acknowledged that the country’s power structure remained dependent on fossil fuels and imported fuel, which have impacted other governance aspects. The government is closely examining inflated electricity bills and has been in discussions with the power sector to find solutions.
An investigation is also underway regarding reports of certain sections using free units. PM Kakar emphasized that information being shared on social media should not be considered factual without official verification. He specifically mentioned that the military does not consume any free units and pays for all consumed electricity. Only Wapda employees, especially officers from grades 17 to 22, are entitled to free units. The government is currently reviewing policy options and intends to announce a policy within 48 hours.
Addressing the country’s security challenges, PM Kakar stated that Pakistan has experienced a resurgence of threats in Khyber Pakhtunkhwa and Balochistan. However, he reassured the nation that no terrorist outfit has the capacity to take over Pakistan’s territory. The government is actively revisiting its response mechanisms to combat various threats. PM Kakar expressed confidence in the capabilities of the military and other defense forces.
PM Kakar also mentioned that the Election Commission of Pakistan is responsible for ensuring free and fair elections, and he expressed hope that upcoming polls would be conducted without any issues.