Pakistani Tehreek-i-Insaaf (PTI) continues its spree of making difficult decisions as the federal cabinet on Thursday approved Rs1.27 per unit hike in electricity tariff. Finance Minister Asad Umar said the rates have been increased by 10 percent for consumers using from 300 to 700 units of electricity per month while an increase of 15 percent is for those who utilise more than 700 units a month.
PTI has tried to mitigate the brunt of the power tariff by stating that consumers who use less than 300 units per month will not be affected by the hike nor will commercial consumers who use connections less than 50KV, which Asad Umar claims are equivalent to 95 percent of businessmen. Earlier in September, PTI had drawn criticism for allowing an increase of Rs1.16 per unit in electricity prices, and 140% increase in gas.
This decision has unsurprisingly drawn ire from opposition parties who have termed it a result of the “economic mismanagement” of the present rulers. Pakistan Muslim League-Nawaz (PML-N) spokesperson Marriyum Aurangzeb implied that the PM’s talking down of the economy has contributed to the current crisis. While these criticisms may be to some extent valid, the current mess has certainly not come about entirely because of two months of governance. Raising of electricity prices was an unpopular but needed step and the opposition should recognise the necessity of the decision.
However, PTI needs to take the concerns of the people into consideration and introduce such measures accordingly. Such policies have very visible real-ground impact on citizens. No matter what Asad Umar says, the poorest will be hit the hardest from the tariff, with the price hike resulting in inflation of the prices of vegetables, pulses and roti as well. Increasing prices is an unpleasant job the government must sometimes do, but the party needs to establish clear communication with the public instead of merely putting the entire blame on the previous government, an explanation which provides little comfort to people whose standard of living is affected.
What PTI needs to do now is to use the price hike to create systematic change in the power system. It has already taken a good step by cracking down on power theft, a phenomena which is a menace to the power industry. It needs to provide a more comprehensive plan on how it will tackle the energy crisis; now that it has the KSA bailout, it is in a better position of doing so.