The Pakistan Tehreek-e-Insaf (PTI) gets into the issue of excessive electricity bills. It is followed by the Jamaat-e-Islami (JI) activism and sit-in against the same.
The PTI’s Omer Ayub Khan said the ruling coalition is responsible for the over-billing crises in the country.
He claimed the per unit electricity price in Imran Khan’s tenure of government was Rs. 17 but this government brought it to Rs. 85. He said this crisis emerged as the government made deals in US dollars with the independent power producers (IPPs). The rulers did not  realize how it could impact the nation in the future, he said.
PTI senator Shibli Faraz alleged the responsibility lies on both the PPP and the PMLN. The PPP made these deals and the PMLN backed and continued them, he said.
“Two parties are real culprits,†he claimed. Faraz said costly production is result of the 70 percent percent imported-fuel based power plants. Faraz said when a thing of worth Rs.100 will be bought in Rs.130 then it would surely impact the system.
Questions:
The JI leadership is already pointing out these issues at sit-in. Why the PTI avoided touching these contracts during its tenure? The PPP brought these IPPs in 1994, the PML-N signed agreements with more.
Why the PTI had not done anything on Kalabagh Dam during it tenure?
Why the PTI avoided joining the JI’s protest? Hafiz Naeem ur Rehman has floated an open invitation to all to join its sit-in.
It is better for the PTI better to join hands with the JI on this issue. In fact, the JI’s demands are precise and without a bias.
JI demands:
The JI demands 50 percent discount on electricity bills for consumers using up to 500 units per month. It calls for removal of the petroleum development levy. It calls for an immediate rollback of the recent hike in petroleum products. It demands 20 percent reduction in the prices of essential goods, removal of unjust taxes. It demanded 35 percent cut in non-developmental expenditures. It criticised the extravagant lifestyle of the elite. It is pressing for the termination of capacity payments and dollar-denominated payment agreements with IPPs.
This protest aims reduction of tax on agriculture and industry by 50 percent reduction of tax burden on the lower salaried class and that it demands should be transferred to the privileged class living in big hoses.
The JI’s leadership gain has urged the government to act promptly stating it is just impacting the Pakistani nation. the PTI leadership also pointed out that all it had brought the circular debt to Rs. 2.5 trillion, which the government is incapable to address this issue. the rest of the talk of these leaders was upon Farm 47.
IPPs:
Many believe the IPPs need finished. A power policy in 1994 by the PPP government brought them in and the PML-N government backed them. The incentives offered were returns guaranteed in the US dollars, and were indexed to US inflation rather than the inflation in Pakistan.
The IPPs are the major source of all evil and their contracts are blamed as the root cause of all the issues in the energy supply chain. It was responsibility of the government to safeguard the interest of the consumers while signing those business contracts with the IPPs. These contracts were negotiated in closed doors, without caring for the allegations of favoritism and corruption. Many IPP contracts in Pakistan have long-term commitments, often spanning 20 to 30 years. The tariff structure in IPP contracts is the issue because these tariffs are set at a fixed rate, which may not accurately reflect the changing cost of energy production. This can result in frequent and complex fuel adjustment surcharges, as the price of oil fluctuates. Today against the authorities concerned have proposed an increase in the unit price. (By Rana Kashif)
