Rawalpindi sit-in of Jamaat-e-Islami is getting momentum even among those who are not physical part of it.
The sit-in demands included decrease in power tariff, unjust taxes and cancelation of IPPs agreements. The question arises what will be the outcome of this sit-in?
The reality is that the massive increase in electricity tariff has turned miserable the life of millions of people in Pakistan.
For example, a woman in Gujranwala, distressed by excessive bill committed suicide by jumping into a drain. The victim – Razia Bibi – was under treatment for some illnesses and received a high electricity bill. After paying the bill, she went short of funds for her treatment. Stricken of this situation, she took her own life. In another incident, a dispute over 30,000 rupees bill led to the murder of a younger man by his real elder brother.
Ali Arslan from district Toba Tek Sing said, “What more can be said about this government that calls the IMF’s debt programs as its success, but didn’t bother how this success cast the nation. This is not the first time we had to pay a Rs. 25,000 electricity bills. It has now become a routine matter.” He said, “We pay these bills on the cost our children.” “I am more than happy that JI is on the roads for our right and not for votes. It would help our children in their basic food, medicine, education and shelter.” “Though I didn’t ever support the JI, but the reality is that those for whom we have been voting are least bothered about us. I am not a physical part of this protest, but I am with them. I will be if it comes to my home town,” he said.
Zaheer Ahmed from Kamala said, “I paid a bill of rupees 16,000 for one light and one fan while my house rent is Rs 6000. This bill is more than double of my house rent, and how I paid it is known to me alone. We voted for the PTI, but it is the JI which is pleading our case through this protest. We appreciate that someone came out for a common cause of the common public particularly when the injustice is increasing”
“Our family fully support the JI for this effort and will remain with them,” he said.
Similarly, residents of other cities like Faisalabad and Multan expressed the hopes that the JI’s stance will bring some relief to all if it remains there. They view it would result into some fruits for the poor.
Amid the prevailing situation, the JI opted sit-in protest in Rawalpindi. The sit-in looks to have brought the government on its tows and puts a question on other political parties. The government is trying to escape but it may not end without tangible results.
The PPP and the PML-N are responsible for the root cause of this crises and the PTI is just interested in power. The PTI when was wising to come into the power suggested people to tear the electricity bills but did nothing when get into power. The JUI-F is protesting, but not for the common people but for personal bargain. The PPP’s role over such issues also looks poor when analyzed the way it supports the PML-N.
JI Emir Hafiz Naeem ur Rehman has made it clear to the government the protest will not come to an end, rather will expand to the whole of Pakistan including the federal capital if its demands are not met.
As the momentum of the protest is growing and has entered in the fourth day, the JI’s stance gets stronger. It puts forth a list of ten demands aimed at addressing public grievances.
The JI demands 50 percent discount on electricity bills for consumers using up to 500 units per month and the removal of the petroleum development levy. It calls for an immediate rollback of the recent hike in petroleum products, 20 percent reduction in the prices of essential goods, removal of taxes on stationery items and educational materials for children. The party also demanded a 35 percent cut in non-developmental expenditures, criticizing the extravagant lifestyle of the elite calling it problematic for the public. It is pressing for the termination of capacity payments and dollar-denominated payment agreements with Independent Power Producers (IPPs). This protest also aims reduction of tax on agriculture and industry by 50 percent. The JI also demanded the tax burden on the lower salaried class be lifted and privileged class be taxed.
In response to this effort, the government has announced the formation of a technical committee to find a way forward. Federal Information Minister Atta Tarar said the government is working how people could be provided relief in this regard.
However, to address the issues that had brought circular debt to Rs. 2.5 trillion, a white elephant – IPPs -need to be killed.
It all started sucking the blood of the nation after the power policy in 1994 by the PPP government. It was carried out by the PML-N government to incentivize private investment in the power sector. The incentives offered were returns guaranteed to be indexed to the US dollar, and indexed to US inflation rather than the inflation in Pakistan. At that time, the juicy return on equity (ROE) of 17 percent was the cherry on top of many favorable terms for the IPPs. This even called the local investors who could not resist the temptation and finally jumped in the pool of money as they saw the return was still existing a revised power policy of 2002. The IPPs are the major source of all evil and their contracts are blamed as the root cause of all the issues in the energy supply chain. It was responsibility of the government to safeguard the interest of the consumers while signing those business contracts with the IPPs.
One of the key issues with IPP contracts in Pakistan is the lack of transparency in the negotiation and award process. These contracts were negotiated in closed doors, without caring for the allegations of favoritism and corruption. Many IPP contracts in Pakistan have long-term commitments, often spanning 20 to 30 years.
The tariff structure in IPP contracts is the issue because these tariffs are set at a fixed rate, which may not accurately reflect the changing cost of energy production. This can result in frequent and complex fuel adjustment surcharges, as the price of oil fluctuates.
Recently, there have been litigations between the government and IPPs on capacity payments and performance guarantee issues, which have proven very time-consuming and costly to resolve.
Former finance minister and leader of the newly formed Awam Pakistan Party, Miftah Ismail, proposed a formula to reduce electricity costs. He suggested abolish sales tax and advance income tax on electricity bills for domestic consumers from July to September.
This measure would reduce household electricity bills by 24 percent, he claimed.
He suggested cut in government’s own expenses, reduction in capacity charges, noting that 46 percent of these charges go to the federal government. He called for lowering taxes on furnace oil and LNG, as well as on four government-owned LNG plants. Additionally, he suggested eliminating taxes on fuel for power plants operating on the grid. He urged the government to cut expenditures for National and Provincial Assembly members by Rs. 400-500 billion and to reduce the size of the Public Sector Development Program (PSDP) by Rs. 50 billion.
