The interim Prime Minister of Pakistan, Anwaarul Haq Kakar, has called an emergency meeting to address the widespread public outrage over inflated power bills. The meeting, held at the PM’s Office in Islamabad, lasted for over two hours. The government plans to provide maximum relief to consumers and discuss the issue with the power division and power distribution companies (Discos). Furthermore, a plan has been devised to withdraw subsidized electricity availed by Discos and government officers in grade 17 and above.
Protests erupted across the country due to exorbitant electricity bills following a significant increase in the national average tariff. In response to these protests, PM Kakar took immediate action by convening the emergency meeting.
One of the main concerns of consumers is the impact of the tariff increase on their monthly bills. The government has assured that the tariff increase has predominantly affected consumers who utilize more than 400 units per month, and it has remained unchanged for 63.5% of domestic consumers.
In addition to the protests, several political parties have warned of further demonstrations if the public is not provided with relief. Jamaat-i-Islami (JI) chief Sirajul Haq announced a nationwide strike on September 2 to protest against the exorbitant increase in electricity prices. The party’s Karachi president, Hafiz Naeemur Rehman, demanded immediate relief for the people and proposed revising the power bills by eliminating illegitimate taxes and extending the due date for payment.
The former defense minister and PML-N leader, Khawaja Asif, suggested approaching the International Monetary Fund (IMF) to negotiate relief for the public. He proposed extending the range of units consumed for lifeline consumers and changing the rule regarding disqualification for relief based on monthly assessment rather than yearly assessment.
With regards to the high taxes and levies on electricity bills, experts believe that they cannot be lowered in the short run due to pressure from the IMF to maintain fiscal balance. The base tariff of Rs30 per unit has contributed to the inflation of electricity bills. Experts suggest that unbundling the electricity and gas utility companies and privatizing them without political interference could be a viable solution in the medium to long term.
It is clear that the issue of inflated power bills has sparked a wave of public outrage and calls for immediate relief. The government is taking steps to address these concerns and provide maximum relief to consumers. The situation continues to unfold, and it remains to be seen how the government will respond to the demands of the public and political parties.