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Electricity crisis and the rising spectre of social unrest

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  • There has been an increase of 108% in gas bills.
  • Only 20% of total electricity bill pertains to actual consumption.
  • Circular debt within electricity sector surges to astonishing Rs2,400 billion.

Here’s a partial list of countries where electricity pricing and related issues have led to protests and demonstrations over the years: Venezuela, Chile, Brazil, Argentina, Mexico, South Africa, Nigeria, Sudan, Egypt, India, Bangladesh, Nepal, Ukraine, Russia, Greece, Spain, France, Italy, Turkey, Iran, Iraq, Jordan, Lebanon, Yemen, Zimbabwe, Kenya, Ethiopia, Indonesia, Philippines, Thailand, Cambodia, Haiti, Colombia, Peru, Bolivia, Ecuador, Guatemala, Honduras and Paraguay.

In Pakistan, the heat of inflation has been progressively growing. Within the last year, the price of our essential commodity, wheat, has soared by a significant 130%. 

Simultaneously, there has been an increase of 108% in gas bills, and prices of tea, rice, and sugar have individually escalated by 90% and 80% respectively. Considering this backdrop, the electricity bill for July can be likened to the symbolic icing on the cake.

Your electricity bill isn’t truly an ‘electricity bill,’ given that only 20% of the total pertains to actual electricity consumption, while taxes make up 30%, and a substantial 50% is attributed to ‘government inefficiencies.’

Around the year 2008, the circular debt within the electricity sector stood at Rs100 billion. Now, looking ahead to 2023, this number has surged to an astonishing Rs2,400 billion. 

This steep escalation highlights the shared accountability of every political government that has been in control from 2008 to 2023 for the intricate crisis that engulfs us in the present moment.

The protests in countries like Venezuela, Chile, and Brazil highlight how even resource-rich nations can stumble when it comes to managing their energy sectors.

Mismanagement and corruption can lead to unreliable supply, exorbitant prices, and the subsequent outrage of citizens who find themselves grappling with blackouts and financial burdens. 

Similarly, in countries such as Sudan, Nigeria, and Egypt, electricity woes intersect with broader dissatisfaction about the quality of governance, sparking mass demonstrations fueled by a sense of economic injustice.

The case of Pakistan could mirror the global trend. The backdrop of escalating inflation paints a grim picture for the average Pakistani’s purchasing power.

The steep rise in the prices of essentials like petrol, diesel, wheat, gas, tea, rice, and sugar has severely strained household budgets, creating a palpable atmosphere of economic anxiety.

In such a milieu, the surge in the July electricity bill becomes a poignant symbol of the mounting financial pressures faced by an average Pakistani.

The global landscape of electricity-related protests underscores the potent mix of economic pressures and governance shortcomings. The case of Pakistan is a microcosm of these global dynamics, where rising inflation and soaring utility bills are testing the patience of the populace.

Beyond the numbers, the electricity bill symbolises the intersection of economic strains and citizen demands for fairness and accountability.

 Ultimately, addressing the electricity crisis and preventing social unrest requires holistic measures that span from energy sector reforms to broader governance improvements.

Only through such comprehensive efforts can Pakistan hope to keep the lights on both literally and metaphorically in the lives of her citizens. Can the electricity bill become the straw that breaks the camel’s back?

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Over Pakistan, Rain and Snowfall Are Expected Over the Next Three Days

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As a succession of westerly winds sweep into the upper areas of Pakistan, rain is expected to fall during the following three days.

The Meteorological Department forecasts snowfall in mountainous regions and rainfall in Khyber Pakhtunkhwa, Kashmir, and Gilgit-Baltistan. There will be rain in Balochistan and the Punjabi plains, including Islamabad and Rawalpindi.

In addition, Khyber Pakhtunkhwa, Gilgit-Baltistan, Kashmir, Upper Punjab, Islamabad, and Northeastern Balochistan are scheduled to see strong winds, thunderstorms, and partly overcast weather during the course of the next day.

Since last month, there has been mild to severe haze in some portions of the country’s upper regions. The capital of Punjab, Lahore, as well as cities like Multan and Sialkot, are among the areas most severely impacted by dense fog.

Other regions of the nation will see dry weather in the interim. It is anticipated that most of Punjab will see morning smog and fog, which will eventually dissipate by nightfall.

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Business

Dar chairs the CCOP meeting; Blue World’s bid offer of Rs.10 billion is rejected.

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The Foreign Minister/Deputy Prime Minister chaired the Cabinet Committee on Privatization meeting.

Other committee members who attended the conference included the Federal Secretaries of several Divisions, the Ministers of Finance and Revenue, Industry and Food, Commerce, Power, and Privatization.

The CCOP took the PC Board’s recommendation into consideration and suggested that Blue World’s bid of 10 billion rupees for the sale of 60% of PIACL’s shares be rejected. The bid was rejected by the CCOP, who chose to follow the PC Board’s advice.

The government’s determination to sell out PIACL through government-to-government or privatization was reaffirmed by the CCOP.

The CCOP was pleased with the Aviation Division’s evaluation of PIACL’s sound financial standing.

Additionally, the CCOP established a committee, chaired by the Minister of State for Finance, to assess potential transaction possibilities for the privatization of the Roosevelt Hotel and the appropriate modes of adoption in light of existing legal rules.

Prior to its subsequent meeting, the CCOP also ordered that all difficulties be resolved and an agreement for the selling of services to an international hotel be concluded.

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Combating Terrorism: Twelve Terrorists Destroyed in Separate Operations by Security Forces

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Eleven terrorists and Kharijis were killed in two separate intelligence-based operations in Balochistan’s Miran Shah District and North Waziristan. One of the victims was Sana Alias Baru, a high-value target.

In the vicinity of Miran Shah in North Waziristan, security forces successfully fought the Khwarij, leading to the death of eight and injury of six.

The general region of Balgatar, Kech District, Balochistan was earlier the scene of an Intelligence-Based Operation that resulted in the deaths of four terrorists, one of them was a high-value target.

Authorities in Kech District were actively seeking Baru, who had a pivotal role in recruiting members of the so-called Majeed Brigade, particularly suicide bombers.

Among the terrorists’ possessions were weapons and ammo.

In order to eradicate any lingering terrorists in the vicinity, a sanitation operation is currently under progress.

With unwavering resolve, the Pakistani security forces will eradicate the terrorist threat from the nation.

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