KARACHI: The federal cabinet will today, Tuesday, take up proposals by the energy ministry as the government of caretaker Prime Minister Anwaar-ul-Haq Kakar draws up a strategy to reduce tariffs amid protests against rising power bills that have spread throughout the country this month.
People have taken to the streets in various cities of Pakistan to demand relief from the latest increase in electricity prices after dealing with record inflation that is the highest in Asia. Television footage over the weekend showed people setting bills on fire and consumers scuffling with officials from power distribution companies.
The protests began in Karachi on August 17 in response to a Rs4.96 per unit power tariff hike by Pakistan’s National Electric Power Regulatory Authority (NEPRA) and have since spread nationwide. The price hike was agreed with the International Monetary Fund (IMF) earlier this year when it approved a short-term $3 billion bailout package.
PM Kakar on Sunday demanded reforms within 48 hours.
“Ministry of Energy has finalized proposals on the issue of electricity bills,” the ministry said in a statement to media, saying the proposal would be presented to the federal cabinet on Tuesday.
“Only the federal cabinet is authorized to approve these proposals and decisions.”
On Monday, the All Pakistan Anjuman-e-Tajiran, a body of traders in Pakistan’s commercial capital of Karachi, said traders would “observe a countrywide shutter down strike on August 31” if the government failed to address the issue of tariff hikes.
The protests over electricity bills are the first challenge for Kakar’s two-week old caretaker administration, which was installed as a constitutional requirement to supervise national elections in three months of the dissolution of Parliament in early August.
The previous government of Shehbaz Sharif had agreed with the IMF to raise taxes and power prices for a deal in June that helped the nation avert a default.