The relief claim

Listen to article

Domestic power consumers and industrialists are in a fix as the arithmetic at work to come up with some relief in their energy bills is no less than a joke. It seems there is either some serious confusion at work on the part of the government, or the finance gurus are in a hypothetical world of their own in adjusting the slabs of tariffs to keep the IMF engrossed.

As far as the Washington-based lender is concerned, it has no mercy for the sizzling consumers as well as the struggling production units, now in an existential phase literally, expecting a sigh of relief. This has led to unrest and a slump in industrial produce that is already uncompetitive in terms of exports.

The IMF's nod, nonetheless, to slash the power rates by a mere Re1 could not stand the test of oracle as it became an instant victim of a pending litigation. Likewise, the inflation-hit populace had a bolt from the blue as the federal cabinet slapped an additional Rs10 per litre petroleum levy, torpedoing a supposed reduction of Rs1.75 per unit in electricity tariffs.

This pun was in contrast to the much-trumpeted claim of a Rs8 per unit cut in energy bills that was to be unveiled as a Pakistan Day gift to the nation. But that is nowhere to be seen, as inherent hurdles in the form of regulatory bodies' input and a lethargic approval module go on to scuttle any solace that salaried and lower-income consumers could ever hope for.

This trial and tribulation at the international fora that holds the valve of our economy and the incapacity of the government to walk the talk in terms of relief have jaundiced growth and confidence of the masses. Pakistan's energy tariff is one of the highest in the region, and a set of shady accords with energy generators are coming to compromise on sovereignty.

It is an enigma that requests made to the IMF for some breathing space for the poor are assuredly shot down, whereas the same pro-reforms donor looks the other way when the talk of taxing the elite is put off for some other day.