Electricity consumers in Paki­stan are anxiously awaiting re­lief as rising costs have created sig­nificant financial strain. During a meeting chaired by Prime Minis­ter Shehbaz Sharif, it was agreed to provide relief to consumers us­ing up to 200 units of electrici­ty. Addressing the meeting along­side party president Nawaz Sharif, Prime Minister Shehbaz Sharif em­phasized that providing relief to the public is his top priority. This meeting holds particular impor­tance as it seeks to address a key election promise made by the Pak­istan Muslim League-Nawaz (PML-N) during the February 2024 elec­tions, which included the provision of free electricity for up to 300 units. Public reminders of this promise have been constant since the PML-N assumed power.

Since taking office, the PML-N government has struggled to de­liver on its utility bill relief promis­es. In fact, the last five months have seen such steep increases in elec­tricity and gas bills that many ex­port industries are on the brink of closure, and some individuals have resorted to suicide due to their in­ability to pay these bills.

The steep rise in electricity rates over the past three years has been attributed to previous gov­ernments. In September 2023, caretaker Prime Minister An­war-ul-Haq Kakar blamed past ad­ministrations for the country’s eco­nomic woes during a conversation with journalists. He announced plans for reforms in agriculture, minerals, information technology, and textiles, and promised future relief packages for electricity con­sumers, though he refrained from sharing specific details to avoid criticism if the promises could not be fulfilled. This announcement al­leviated a week-long uncertain­ty, despite interim Finance Minis­ter Shamshad Akhtar previously rejecting any relief due to binding agreements with the International Monetary Fund (IMF).

The high cost of electricity is largely due to agreements with Independent Power Producers (IPPs), which are non-utility gen­erators that produce electricity for sale to the national grid. IPPs often sell power through Power Purchase Agreements (PPAs) to third parties. The agreements with these producers have contributed significantly to the financial bur­den on consumers.

High electricity costs are a major concern for both household con­sumers and industrial sectors. Pak­istan’s electricity generation capac­ity stands at 43,775 megawatts, with 26,683 megawatts from ther­mal, 10,635 megawatts from hy­dropower, 1,838 megawatts from wind, 630 megawatts from solar, 369 megawatts from biogas, and 369 megawatts from nuclear en­ergy. Private entities operate 49 power plants, generating around 19,000 megawatts, while nation­al consumption has never exceed­ed 31,000 megawatts. The govern­ment often cites payments to IPPs as the reason for high electricity prices. However, it is argued that re­negotiating these agreements could reduce power generation by up to 10,000 megawatts, positively im­pacting Pakistan’s foreign exchange reserves and overall economy.

Electricity prices exceeding sev­enty rupees per unit are unten­able for both consumers and busi­nesses. Such high costs prevent households from affording ba­sic electricity and hinder indus­trial operations, leading to wide­spread protests from both public and business communities. Con­sequently, authorities have initiat­ed legal actions against electricity theft and bill defaulters, while gov­ernment data reveals that 34 gov­ernment entities and their officials consume free electricity, adding billions of rupees to the burden on consumers and businesses.

The public demands that the gov­ernment reconsider its policies. It is evident that the cost of lost units due to theft or free consumption is unfairly passed onto paying con­sumers. The government should establish a fair system that ensures relief for general consumers.

Furthermore, electricity con­sumers are also bearing the bur­den of tax evasion in other sectors. The government should focus on improving alternative tax systems and revisiting agreements with IPPs to facilitate consumer relief. Repeated promises of relief have yet to materialize, and consumers are now waiting for concrete ac­tions. Economic recovery is closely tied to providing relief to electrici­ty consumers, and if Shehbaz Shar­if succeeds in this endeavor, public trust in his administration could be significantly bolstered.

GULAB UMID,

Turbat.