Mirage reforms in power sector
Why this matters: local context for readers following news across Pakistan and the region.
THE exhaustive news briefing of Power Minister Sardar Awais Ahmad Khan Leghari on Sunday confirmed the widely-held belief that the so-called reforms in the power sector are an eye-wash as they miserably failed to improve performance and profitability and were based only on the strategy of burdening the common man while protecting inefficiency and rampant corruption. The Minister tried in vain to paint a rosy picture and could not ward off genuine complaints and grievances of all categories of consumers vis-à-vis quality of service and the region’s highest tariff despite election pledges to provide free of cost electricity to the ordinary citizen. The Minister rejected reports suggesting that electricity subsidies for protected consumers were being withdrawn, describing such claims as inaccurate and misleading. His remarks came against the backdrop of reports last month that Pakistan had committed to the International Monetary Fund (IMF) to gradually end untargeted electricity subsidies for residential consumers and provide future support through the Benazir Income Support Programme (BISP) as part of conditions attached to a $1.2 billion climate support loan. The denial is questionable as the Government is proceeding ahead with its plan of collecting data of consumers through the QR code-based system. Mr. Leghari talked about continuation of the subsidy for ‘eligible’ consumers but did not explain what the eligibility criteria are. There are, however, reports that the Government will cross-check the information being provided by consumers against BISP data-base and discontinue subsidy for those not listed in the programme, which means a steep rise in electricity tariff for those who sacrifice their comfort to consume less than 200 units a month to remain eligible for lower rates. The Government is also aiming to hunt down those who have installed more than one electricity meter at a premises on the premise that these meters are aimed at dividing consumption to remain