Mainstream political parties claim that they will provide free electricity to consumers after coming into power. But, is this possible?
Pakistan Muslim League-Nawaz (PML-N) leadership promised up to 200 units free while Pakistan People’s Party (PPP) chairman Bilawal Bhutto-Zardari says the consumers would not be charged for consumption of up to 300 units every month if his party voted to power.
Istehkam-e-Pakistan Party (IPP) and Jamaat-e-Islami promised the same. They make these claims ahead of national polls which are scheduled to be held on February 8.
But voters and some experts have no faith in the politicians’ pledges and declarations. It is not even an economically feasible idea.
Pakistan’s power sector is facing 2700 billion circular debts, the transmission system is deteriorating, power plants are running dry because of fuel shortages and the per unit cost is touching over 50 rupees. The overall generation is hovering around 15,000 megawatt (MW) these days and the load shedding has become a permanent issue. Though the installed capacity is 40,000MW, the generation in peak summer touches 25,000MW. Pakistan pays billions of rupees per year to private producers (Independent Power Producers) in terms of capacity charges.
Many believe
The revenue targets for the ongoing financial year are rupees 9000 billion. And if they are achieved, the country has to pay Rs8500 to global lenders in terms of debt-servicing.
The power supply companies have millions of consumers across the country who monthly spend up to 300 units. Any government needs billions of rupees to subsidise the promised electricity. And even it is not possible with cross subsidy method because the commercial and industrial sectors could never bear the burden.
