Traders’ associations and the general public have launched large-scale protests against the surging electricity bills and substantial taxes, leading to significant demonstrations across major cities including Karachi, Lahore, Peshawar, Quetta, and Rawalpindi. The Karachi protest, endorsed by Jamaat-e-Islami (JI), specifically demanded a reduction in the continuously rising electricity costs and additional taxes imposed through power bills.
The core issue lies in the fact that electricity bills have become unaffordable for the middle class citizen. This concern is further exacerbated by the existing challenging economic conditions, where many individuals are grappling to make ends meet. The weight of electricity bills, which frequently reach exorbitant sums, has pushed people to their limits. The crux of the matter encompasses not only the escalating electricity tariffs, but also the imperative to establish robust enforcement and efficient recovery mechanisms. Advocates of the protest contend that raising electricity prices would exacerbate the issue by incentivizing power theft.
The current scenario, marked by public protests, was somewhat inevitable – a consequence of the growing disparity between earnings and the mounting utility bills. Even basic necessities such as a light bulb and a couple of fans have become a struggle for working-class households, potentially leading to further protests in the near future. The caretaker government, initially tasked with organizing elections and departing, is now compelled to find ways to improve the situation, if not entirely rectify it. In light of the escalating protests, Caretaker Prime Minister Anwaar ul Haq Kakar has convened an emergency meeting at the Prime Minister’s House. The meeting includes inputs from the Ministry of Energy (Power Division) and distribution companies, aiming to devise strategies to provide maximum relief to consumers burdened with inflated power bills.
In July, the previous federal cabinet approved a substantial increase in the base tariff of electricity, exceeding the national average tariff determined by the National Electric Power Regulatory Authority (NEPRA). NEPRA had raised the tariff to enhance revenue collection for loss-making power distribution companies (Discos) during the current fiscal year. The revised national average tariff for the 2023-24 fiscal year has been set at Rs29.78 per unit kWh, which is Rs4.96 higher than the previous tariff.
Protests against electricity bills have spread widely, reflecting not only the recent tariff hikes but also additional charges incorporated into the bills. This absence implies a lack of direct communication channels and makes it difficult to offer concessions that might quell the protests. Despite the situation not reaching the magnitude of the Arab Spring protests, the concerns of consumers extend beyond power tariff hikes. Pressures stemming from fuel price increases and currency devaluation are also contributing factors.
Public frustration partly stems from the perceived communication gap between the government and the people. The caretaker government, tasked with stabilizing the economy, must adhere to the International Monetary Fund’s (IMF) recommendations. While not elected, the caretakers intend to extend their tenure beyond the constitutionally stipulated time limit, necessitating public consent. To mitigate the protests, the caretaker government should enhance transparency by providing a timeline and specific quantities for measures such as the rupee’s parity with the dollar. While this might not completely prevent protests, it can help alleviate the situation. The government should proactively address the growing protests and avoid confrontations with the public, recalling previous incidents where utility offices were vandalized. Preventing such escalations is crucial for maintaining stability.