Citizens hit with additional Rs2.2tr burden: PTI

Says Punjab's 10% electricity theft rate contributes to the highest overall volume of theft

LAHORE:

During the previous fiscal year, Pakistan accumulated approximately Rs7,000 billion in tax revenue. However, following consecutive tariff hikes, the government is now seeking an additional Rs2,200 billion in petrol and electricity tariffs alone.

This concerning revelation was brought to light by Muzamil Aslam, the spokesperson for the PTI on economic matters, in a video message addressing the country's unprecedented inflation on Saturday.

Aslam underlined that previously, the government had been collecting Rs3,000 billion in taxes related to electricity. Yet, with recent tariff adjustments, this figure is set to rise substantially, ranging from Rs4,200 to Rs4,300 billion.

He said the government's attempt to recover Rs180 billion per month from the public is an immense burden on citizens already grappling with the worst inflation in the nation's history.

Each time the government introduces a mini-budget of Rs200 to Rs300 billion, it places substantial strain on the public, he said. However, the outgoing PML-N led government imposed an additional Rs2,200 billion burden on the public, seemingly disregarding the ongoing economic situation.

Aslam refuted claims of electricity theft in Balochistan, Quetta, and Peshawar, highlighting that these regions suffer from an inadequate electricity supply.

He debunked the narrative that Balochistan consumes the least electricity, citing Khyber-Pakhtunkhwa as the province with the second-lowest electricity supply, followed by Sindh and Punjab.

As for the issue of electricity theft, Aslam explained that even though 30 per cent of electricity was allegedly stolen in most provinces, Punjab's 10 per cent theft rate contributed to the highest overall volume of theft, leading to inflated electricity prices for the entire nation.

Delving into financial intricacies, Aslam disclosed that out of the Rs4,200 billion garnered from increased electricity prices this year, a substantial Rs2,000 billion was allocated for power plant rents.

Interestingly, the actual fuel costs amount to merely Rs800 to Rs900 billion, while the remainder consists of taxes.

Additionally, Rs184 billion annually goes toward LNG plant rents, and Rs400 billion is set aside for coal import rents.

The wind plant incurs an annual expense of Rs175 billion, despite being a cost-effective option.

Aslam questioned the fairness of this arrangement, where the country pays Rs28 per unit as rent to the LNG plant, irrespective of the electricity supply.