The federal government has approved two percent raise in the power tariff, which is supposed to help the federal government end the subsidies on the provision of electricity. However, the real reason for the raise is to comply with the IMF conditionalities for the release of the next tranche. This hike, however, will not be the last one of the electricity tariff, which is scheduled to keep going up by two percent in succeeding months. This is in addition to any increases that might be made because of fuel adjustments caused by rise in the international fuel price. Only recently, NEPRA authorised a huge increase in tariff because of fuel, which is apart from the end-to-subsidy increase. It should not be forgotten that both increases have been ordered by the IMF. One reason why the finances of the electricity distribution companies are awry has been the looting of the economy visible in the governments solution for the power crisis, the Rental Power Plants (RPPs). A report by the Auditor General of Pakistan has revealed that the RPPs cost the national exchequer Rs 26.52 billion in 2010-11 through financial irregularities, embezzlement and mismanagement. Because the electricity distribution companies have to find this money, which represents funds that have benefited the political favourites who have set up these RPPs, this money must be extracted from the consumer in terms of a higher tariff. This does not include the question of circular debt, because of which the thermal generation plants were shutting down, as furnace oil had not been imported to fuel them. The tariff hike is particularly painful for the ordinary citizen, for it has come at a time of intense heat, at a time when electricity use is at its peak, at a time when all cooling devices have been turned on. This is on top of the use of electricity for the powering of export industries. Exports have had a good year so far, but electricity prices are being raised to a point where these exports will not be viable any longer, and will not provide any support to the economy, in terms of tax revenue, contribution to GDP growth, or jobs. This will render it easier for the government to surrender the national interests to foreign powers on the excuse that their economic support is essential. The only way out for the government of any self-respecting country would be to break out of the shackles placed by the IMF, and pay attention to the miseries of the common citizen. If that also means breaking with the USA and its so-called war on terror, then so be it.