Monday saw the worst autocratic rule in the country when the federal government bypassed the National Electric Power Regulatory Authority (NEPRA)—the regulatory body of electricity – to make a massive increase of 210 per cent in the power tariff for domestic consumers effective. With same stroke of pen, the government increased the prices of petrol, diesel and other petroleum products.
Meaning thereby the fuel budget of every house—be it is of the poor, rich or industry-- will be multiplied, causing a major jack-up in the input cost of every sector.
Justifying its reckless act, the government has given some relief for the poor. Notwithstanding what it had offered to the poor, the fact is that the oil and power that constitutes fundamental ingredient of input of agricultural and industrial sector, the price of every house-hold item will be jacked up which will nullify the so-called and eye-wash relief offered to the poor in the minimum slab on power consumption. Every human being living in Pakistan will be facing more financial constraints as he will be paying more on anything he will consume.
Apart from price-hike that the massive jack-up in power and oil prices will also trigger a unprecedented inflation. There is every chance that the industrial sector will face severe liquidity crunch that may bring industrial wheels to a grinding halt that for sure will result in more unemployment. A significant proportion of the population already living below poverty line will be pushed to starvation and the middle class that is considered to be the main stray of the economy will also shed their buying power. Resultantly, the worst recession in the market is inevitable.
The government decision to make autocrat increase in the power and oil prices is the worst act that even a dictator cannot dare to implement. But the so-called peoples’ representatives have made mockery of the confidence the Electoral College that voted them to power, and after assuming power, the incumbent rulers have grown bigger than their size hence ignoring the national institutions—be it is the NEPRA or the Parliament—in making the decision of national importance.
Considering themselves unquestionable, the rulers are adopting short-cuts to squeeze out money from the hapless masses rather than carrying out remedial measures of eradicating massive corruption, high ratio of line losses, overstaffing and unmanageable perks & privileges to the WAPDA employees.
On the top of it, the able leadership did not launch drive to recover a receivable amount Rs 441 billion rather opted short-cut to generate total revenue of Rs 941 billion during one year on the call of their international financial managers sitting in the IMF.
The international donours may find the increase in power tariff satisfactory to shower some words of praise on the rulers but the reckless act of the government will surely spell economic disaster for the country and make life of common man a living hell.
Particular if the government continued to pass the burden of its incompetency and bad management of the state-run institutions to consumers who paid their dues regularly.
The recent increase is designed to raise an additional revenue of Rs175 billion against the IMF demand of doing away with the power subsidy of Rs396 billion.
Even earlier, the circular debt was paid off by burdening the common man—the decision that experts perceived as ultra-constitutional. it is advisable here that the country’s managers should revamp the existing system to make efficient and cost effective rather than fleecing consumers through direct increase prices and indirect increase in taxation on it, befooling the poor with slabs of benefits.
By no means, new slabs on power tariff will extend any breather to the poor. Soon the wrath of the tariff-hike will echo in the power corridors let the power bills reach the masses later this month. Similarly, the petrol is fuel of the poor. Unfortunately, again the petrol price is jacked up the maximum while the jet fuel for the rich gets a minimum push. The increase is simply too much, thus the government should revise its oppressive decision before it echoes on streets and roads in mass protests.
Wednesday, October 2, 2013
Pakistan: Yet another oppressive move
Monday saw the worst autocratic rule in the country when the federal government bypassed the National Electric Power Regulatory Authority (NEPRA)—the regulatory body of electricity – to make a massive increase of 210 per cent in the power tariff for domestic consumers effective. With same stroke of pen, the government increased the prices of petrol, diesel and other petroleum products.
Meaning thereby the fuel budget of every house—be it is of the poor, rich or industry-- will be multiplied, causing a major jack-up in the input cost of every sector.
Justifying its reckless act, the government has given some relief for the poor. Notwithstanding what it had offered to the poor, the fact is that the oil and power that constitutes fundamental ingredient of input of agricultural and industrial sector, the price of every house-hold item will be jacked up which will nullify the so-called and eye-wash relief offered to the poor in the minimum slab on power consumption. Every human being living in Pakistan will be facing more financial constraints as he will be paying more on anything he will consume.
Apart from price-hike that the massive jack-up in power and oil prices will also trigger a unprecedented inflation. There is every chance that the industrial sector will face severe liquidity crunch that may bring industrial wheels to a grinding halt that for sure will result in more unemployment. A significant proportion of the population already living below poverty line will be pushed to starvation and the middle class that is considered to be the main stray of the economy will also shed their buying power. Resultantly, the worst recession in the market is inevitable.
The government decision to make autocrat increase in the power and oil prices is the worst act that even a dictator cannot dare to implement. But the so-called peoples’ representatives have made mockery of the confidence the Electoral College that voted them to power, and after assuming power, the incumbent rulers have grown bigger than their size hence ignoring the national institutions—be it is the NEPRA or the Parliament—in making the decision of national importance.
Considering themselves unquestionable, the rulers are adopting short-cuts to squeeze out money from the hapless masses rather than carrying out remedial measures of eradicating massive corruption, high ratio of line losses, overstaffing and unmanageable perks & privileges to the WAPDA employees.
On the top of it, the able leadership did not launch drive to recover a receivable amount Rs 441 billion rather opted short-cut to generate total revenue of Rs 941 billion during one year on the call of their international financial managers sitting in the IMF.
The international donours may find the increase in power tariff satisfactory to shower some words of praise on the rulers but the reckless act of the government will surely spell economic disaster for the country and make life of common man a living hell.
Particular if the government continued to pass the burden of its incompetency and bad management of the state-run institutions to consumers who paid their dues regularly.
The recent increase is designed to raise an additional revenue of Rs175 billion against the IMF demand of doing away with the power subsidy of Rs396 billion.
Even earlier, the circular debt was paid off by burdening the common man—the decision that experts perceived as ultra-constitutional. it is advisable here that the country’s managers should revamp the existing system to make efficient and cost effective rather than fleecing consumers through direct increase prices and indirect increase in taxation on it, befooling the poor with slabs of benefits.
By no means, new slabs on power tariff will extend any breather to the poor. Soon the wrath of the tariff-hike will echo in the power corridors let the power bills reach the masses later this month. Similarly, the petrol is fuel of the poor. Unfortunately, again the petrol price is jacked up the maximum while the jet fuel for the rich gets a minimum push. The increase is simply too much, thus the government should revise its oppressive decision before it echoes on streets and roads in mass protests.
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