Piecemeal relief

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Editorial August 20, 2024

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The Punjab government's decision to come up with a two-month temporary relief on electricity bills has stirred a debate. The dictum is now also applicable for those falling under the Capital territory. And the subsidy can only be enjoyed by consumers using between 201-to-500 units and that too for the specified months of August and September. The discount is of Rs14 per unit, and will be funded by the Punjab government which has a surplus budget and boasts a cash increase of 36% from the federal pool, along with a 100% cash cover for the annual development plan. But the point is that what about those who strictly tighten their belt to consume less than 200 units, as they are the ones who are in dire need of relief.

Such piecemeal efforts are meaningless in the long run and are carved out for political mileage. The enigma at hand is that of expensive electricity and one that is tariffed at a horrible Rs60 per unit. This index is untenable and is one of the costliest in the region, slapping down production and annihilating the spending power of the masses. Similar vibes were also sent down by the PPP during electioneering, when the party chairperson promised 300 free units of electricity to avert pestering inflationary trends. As hollow as they turned out to be, this gimmick too has fallen short of expectations of the masses and they are rightful in asking how it will make a difference regarding their obliterated economy.

While other three provinces have defied walking such a path, they argue that it will not be a feasible approach to do window-dressing as budget constraints loom large. The over-tariffed bills of June and July that have been invoiced with a sharp 14 per cent increase have already left no room for people with meagre income to heave a sigh of relief. This hue and cry could now be heard from the middle class, the affluent and the small businesses alike. The need of the hour is to take a dip into reality and find new inexpensive power generation avenues while getting rid of the capacity-payment blackmailing of IPPs.

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