Pakistanis struggle to keep the lights on amid record electricity bills, sky-high inflation

Muhammad Amir Khan, a driver with a private company, holds his electricity bill of Rs28,457 ($95.99) on September 18, 2023, in Karachi, Pakistan. (AN Photo)
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Updated 19 September 2023
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Pakistanis struggle to keep the lights on amid record electricity bills, sky-high inflation

  • Pakistan saw nationwide protests and strikes all of August over rising electricity prices and brisk inflation
  • Pakistan hiked power tariffs in July under IMF deal to reduce unsustainable public debt in power and gas sectors

KARACHI: Muhammad Amir Khan, a driver with a private company, has been in despair since last month when he received an electricity bill of Rs28,457 ($95.99).

With a monthly salary of Rs27,000 ($91.7) — his only source of income to support a seven-member household — Khan had no option but to default on paying the bill.

Now he waits for the inevitable: the power supply company to turn the lights off.

Khan is not alone.

Pakistan saw nationwide protests and trader strikes all of August over rising electricity prices and brisk inflation, as citizens and businessmen came out to burn electricity bills in a show of defiance and despondency. A $3 billion loan program, approved by the International Monetary Fund (IMF) in July, averted a sovereign debt default in Pakistan but reforms linked to the bailout have fueled annual inflation running at 27.4 percent.

Pakistan increased its power tariffs in July under the IMF deal, part of moves to reduce unsustainable public debt in the power and gas sectors. Tens of thousands of Pakistanis thus received steep electricity bills during August for power units consumed in July. To make matters worse, Pakistan last Friday also announced a record rise in petrol and diesel prices, the second big increase in two weeks.

“My electricity bill [last month] was so high that I could not pay it, because do I pay the bill or buy food or provide for my children?” Khan told Arab News.




Muhammad Amir Khan, a driver with a private company, holds his electricity bill of Rs28,457 ($95.99) on September 18, 2023, in Karachi, Pakistan. (AN Photo)

“And in case of non-payment of the bill, if my electricity is disconnected then I will be forced to live in the darkness because I don’t have any other resources.”

“How can I carry on with an income that is less than the electricity bill I’ve been handed?”

Inflationary pressures are hitting the masses hard. August data from Pakistan’s statistics bureau showed a slight easing from July’s 28.3 percent inflation rate, but food inflation remained elevated at 38.5 percent.

Financial expert Ali Nawaz said low-income groups across the country were unable to make ends meet as food inflation and record power bills had increased their cost of living significantly.

“Higher electricity bills have reduced their disposable income to a very large extent, which has been impacting their livelihood,” Ali said. “They are unable to fund their daily living, they are unable to fund their health care expenditure, they are unable to fund their food-related expenses.”

“We should focus on reducing electricity prices as soon as possible by focusing more on alternative energy sources so we can give some relaxation to the common people,” Ali added.

But what is driving electricity prices in Pakistan?

One is the cost of non-renewable fuel resources such as gas, furnace oil, diesel and coal while the other is the rising value of the US dollar and the depreciating rupee.

Energy purchases account for most of Pakistan’s import bill. As the rupee withers against the dollar, imported fuel has become costlier.

The IMF deal-mandated hike in electricity prices has not helped.

The lender had pointed out that liquidity conditions in the power sector were acute, with a buildup of arrears and frequent power outages. The arrears — a form of public debt that builds up due to subsidies and unpaid bills — were a major issue in the eight months of negotiations between the IMF and Islamabad before a deal was reached in June.




An activist of Pakistan's right wing religious party Jamaat-e-Islami holds a placard reading, "withdraw the additional electricity bills and the government should end the patronage of IPPs contracts" during a demonstration against the surge in electricity prices in Peshawar on September 18, 2023. (AFP/File)

Debts to power generation companies have accumulated to nearly 2.6 trillion rupees ($9.04 billion), according to official figures, which show a separate government debt of around 1.6 trillion rupees ($5.56 billion) to the gas sector. The power sector is also beset by theft, which needs to be overcome.

With the recent tariff hikes, the per unit price of electricity has gone up to Rs35.57 for off-peak electricity hours and Rs41.89 for on-peak hours. Previously, the rates were Rs19.66 for off=peak hours and Rs25.98 for on-peak times. The per unit rates, with the addition of various taxes, have increased to Rs53-63 for different consumer categories. 

Another reason for the high cost of electricity is “capacity payments” to Independent Power Producers (IPPs), private entities that own facilities to generate electric power for sale to end users. Pakistan’s energy mix consists of 58.8 percent thermal power, which means the country is heavily dependent on IPPs. But contracts entered into with the independent producers are widely believed to be skewed in favor of the companies.

Among major criticisms of IPP contracts is that they require the government to make capacity payments even when power generated is not fully utilized. Experts say the arrangement leads to a high cost of electricity which augments the production costs of factories and industrial units. IPPs have also been accused of making exorbitant profits and dividends on capital invested under existing contracts and of over-invoicing and misreporting, while experts and politicians have called for a heat rate audit.

Representatives from the Power Division told Senate last month capacity payments to IPPs for the current fiscal year had reached a staggering Rs1.3 trillion.

In a briefing to journalists earlier this month, caretaker Prime Minister Anwaar-ul-Haq Kakar admitted problems with IPP agreements and said his government was “thoroughly” discussing its contractual obligations with the producers.

“We are on a course where we feel that we should find some sort of resolution, as everyone feels that they are uneven contracts,” the PM said, adding that he would share more details in due course of time.


Pakistan reports two new polio cases in northwest, raising 2024 tally to 52

Updated 22 November 2024
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Pakistan reports two new polio cases in northwest, raising 2024 tally to 52

  • Cases detected in DI Khan district in Khyber Pakhtunkhwa province 
  • Pakistan and Afghanistan are last polio-endemic countries in the world

PESHAWAR: Pakistan’s polio eradication program said on Friday two new cases of the crippling virus had been detected in the country’s northwest, bringing the nationwide tally for 2024 to 52. 
Pakistan, along with neighboring Afghanistan, remains the last polio-endemic country in the world. The nation’s polio eradication campaign has hit serious problems with a spike in reported cases this year that have prompted officials to review their approach to stopping the crippling disease.
“The Regional Reference Laboratory for Polio Eradication at the National Institute of Health has confirmed the detection of two more wild poliovirus type 1 (WPV1) cases in Pakistan, bringing the number of total cases in the country this year to 52,” the National Emergency Operation Center for Polio Eradication said in a statement. 
“On Thursday, November 21, the lab confirmed the cases from DI Khan where a boy and girl child are affected. Genetic sequencing of the samples collected from the children is underway.”
DI Khan, one of the seven polio endemic districts of the Khyber Pakhtunkhwa province, has now reported five polio cases this year.
Of the 52 cases reported in 2024, 24 are from the Balochistan province, 13 from Sindh, 13 from KP and one each from Punjab and Islamabad, the federal capital.
Poliovirus, which can cause crippling paralysis particularly in young children, is incurable and remains a threat to human health as long as it has not been eradicated. Immunization campaigns have succeeded in most countries and have come close in Pakistan, but persistent problems remain.
In the early 1990s, Pakistan reported around 20,000 cases annually but in 2018 the number dropped to eight cases. Six cases were reported in 2023 and only one in 2021. 
Pakistan’s polio program began in 1994 but efforts to eradicate the virus have since been undermined by vaccine misinformation and opposition from some religious hard-liners, who say immunization is a foreign ploy to sterilize Muslim children or a cover for Western spies. Militant groups also frequently attack and kill members of polio vaccine teams. 
In July 2019, a vaccination drive in Khyber Pakhtunkhwa was thwarted after mass panic was created by rumors that children were fainting or vomiting after being immunized.
Public health studies in Pakistan have shown that maternal illiteracy and low parental knowledge about vaccines, together with poverty and rural residency, are also factors that commonly influence whether parents vaccinate their children against polio.
Pakistan’s chief health officer this month said an estimated 500,000 children had missed polio vaccinations during a recent countrywide inoculation drive due to vaccine refusals.


Marathon polo tournament draws huge crowds in Pakistan’s picturesque north

Updated 22 November 2024
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Marathon polo tournament draws huge crowds in Pakistan’s picturesque north

  • Ten-day tournament played among 17 teams of Gilgit-Baltistan as part of independence day celebrations 
  • GB Independence Day celebrated on Nov. 1 every year to mark region’s independence in 1947 from Dogra Raj

KHAPLU, Gilgit-Baltistan: Large crowds have been gathering daily in the northern mountain town of Gilgit for a 10-day polo tournament being held to mark Gilgit-Baltistan’s Independence Day, the military’s media wing and government officials said on Thursday, the last day of the event. 
GB is administered by Pakistan as an administrative territory and consists of the northern portion of the larger Kashmir region, which has been the subject of a dispute between India and Pakistan since 1947. The impoverished, remote and rugged mountainous territory borders Afghanistan and China and is the gateway of the $65 billion China-Pakistan Economic Corridor (CPEC) infrastructure plan. 
The Gilgit-Baltistan Independence Day is celebrated on Nov. 1 every year to mark the region’s independence in 1947 from Dogra Raj, the erstwhile rulers of the now disputed Jammu and Kashmir region.
“The big event of Jashan Azadi Polo Tournament was held at Wahab Shaheed Polo Ground in Gilgit, a remote area of the northern region under the management of Pak Army,” the military’s media wing said in a statement, saying Force Command Northern Areas, Maj. Gen. Syed Imtiaz Hussain Gillani, was the chief guest at the closing ceremony of the event in which 17 teams participated.

A Pakistani tribal polo team member chases the ball as the crowd watches the match during a polo game in Skardu, in Pakistan's northeastern Gilgit-Baltistan region on November 21, 2024. (Photo courtesy: ISPR)

“The final match was won by Chilas in civil and NLI teams in departmental categories respectively,” the statement added. 
Gilgit-Baltistan is also known for the annual polo festival at Shandur, an area between the northern Pakistani towns of Gilgit and Chitral, and at over 12,000 feet (3,700 meters) the world’s highest polo ground. 
Polo in GB is played without rules and at a blistering pace, suggesting more of a clash of cavalry than a sport. Locals believe polo was born in their land and Gilgit is home to the famous polo inscription: “Let other people play at other things, the King of Games is still the Game of Kings.”

A Pakistani tribalmen perform traditional dance during a polo game in Skardu, in Pakistan's northeastern Gilgit-Baltistan region on November 21, 2024. (Photo courtesy: ISPR)

Faizullah Faraq, the spokesperson for the G-B government, said thousands had come to watch the matches and celebrate the Gilgit-Baltistan Independence Day.
“Polo is the national game of Gilgit-Baltistan. And thousands of people reached Gilgit’s playground to watch the polo matches daily,” he told Arab News on Thursday. 
“Such kinds of activities unite the youth and they play their role to create harmony in the society. The promotion of polo is a need of time to maintain peace in society.”

Crowd watches the match during a polo game in Skardu, in Pakistan's northeastern Gilgit-Baltistan region on November 21, 2024. (Photo courtesy: ISPR)

Afrad Gul, the team captain of the winning Chilas team, appreciated locals who supported the tournament. 
“I have been playing polo for the last 15 years, my son was also part of my team,” Gul said in a phone interview. “We have left no stone unturned to keep this regional game alive.”


Pakistan government slams Imran Khan’s wife for using Saudi Arabia for ‘political point scoring’

Updated 22 November 2024
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Pakistan government slams Imran Khan’s wife for using Saudi Arabia for ‘political point scoring’

  • Deputy foreign minister urges political forces to desist from compromising Pakistan’s foreign policy for political objectives
  • Khan has been in prison since August last year and facing a slew of legal challenges which he says are politically motivated

ISLAMABAD: The Pakistan government on Friday rejected comments by Bushra Bibi, the wife of jailed former Prime Minister Imran Khan, that Saudi Arabia had been opposed to her husband’s government, calling on political forces to desist from compromising the country’s foreign policy for the sake of “petty” political point scoring. 
In a rare public message on Thursday, Bushra assured state institutions Khan had no plans to seek revenge from opponents if he was freed from jail, as she rallied supporters to join a protest planned by Khan’s Pakistan Tehreek-e-Insaf (PTI) in Islamabad on Nov. 24. In the message, she also made remarks that were widely seen as implying that the Saudi government had been opposed to Khan. 
“Implicating Saudi Arabia for petty political point scoring is regrettable and indicative of a desperate mindset,” Pakistan’s deputy Prime Minister Ishaq Dar said in a statement after Bushra’s video was released. “We urge all political forces to desist from compromising Pakistan’s foreign policy in pursuance of their political objectives.”
“Pakistan and the Kingdom of Saudi Arabia are close friends and brothers. This relationship is based on mutual respect,” Dar added. “We have great admiration for Saudi Arabia’s journey of development and prosperity. The Pakistani nation is proud of its close relationship with Saudi Arabia which has always stood by Pakistan through thick and thin.”
After his ouster from the PM’s office in a parliamentary vote of no-confidence in 2022, Khan had also alleged that he was removed by his political rivals and the all-powerful military with the backing of the United States government. All three deny the charge. 
Khan has been in prison since August last year and facing a slew of legal challenges. He denies any wrongdoing, and alleges all the cases registered against him are politically motivated to keep him in jail.


Pakistan telecom regulator affirms support for ‘positive use’ as VPN ban deadline looms

Updated 22 November 2024
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Pakistan telecom regulator affirms support for ‘positive use’ as VPN ban deadline looms

  • PTA says businesses can use VPNs by registering with government but unregistered VPNs will be blocked after Nov. 30
  • Rights activists say government wants to block vital tools that allow users to bypass restrictions amid digital crackdown

ISLAMABAD: The chairman of the Pakistan Telecommunication Authority (PTA), Major General (r) Hafeezur Rehman, said this week the body would facilitate the “positive use” of virtual private network (VPN) services even as the government was determined to move ahead with plans to block unregistered VPNs by the end of this month.
The PTA says businesses and freelancers can continue to legally use VPNs by registering with the government, but unregistered VPNs will be blocked in Pakistan after Nov. 30. Authorities say the measures are meant to deter militants and other suspects who use VPNs to conceal their identities and spread “anti-state propaganda” and promote “blasphemous” or other illegal content online.
Digital rights activists say the move is part of government attempts to block vital tools that allow users to bypass restrictions amid a wave of digital crackdowns, particularly since the use of VPNs has sharply risen in Pakistan since February this year when the government banned X. 
The federal government is also moving to implement a nationwide firewall to block malicious content, protect government networks from attacks, and allow the government to identify IP addresses associated with what it calls “anti-state propaganda” and terror attacks. Internet speeds have dropped by up to 30-40 percent over the past few months due to the firewall, according to the Wireless and Internet Service Providers Association of Pakistan (WISPAP).
“We don’t say to block the VPNs but to regulate the VPNs,” the PTA chairman said on Thursday during an address at Youth Safety Summit Pakistan, jointly organized by TikTok and the PTA.
“If somebody needs VPN for the business purposes, for some positive use, nobody will stop him, let me reassure you, we will facilitate him.”
Rehman said the authority issued its first letter for VPN registration back in December 2010.
“It is now 15 years,” he said. “We have been pushing people to please register with us so that their business is not disturbed.”
The PTA chairman urged TikTok and other social media platforms to use artificial intelligence tools to “block anti-state and blasphemous content.”
“This summit marks a significant step in our mission to secure a safe and inclusive digital environment for Pakistan’s youth,” Rehman said. “PTA remains steadfast in its efforts to implement innovative measures that protect children online and promote a digitally responsible society.”
Emir Gelen, the director of government relations and public policy at TikTok for the Middle East, Turkiye, Africa, Pakistan and South Asia, reaffirmed TikTok’s commitment to online safety at the summit. 
“At TikTok, we are committed to ensuring the online safety and well-being of our users, particularly children and youth,” he said.
“We believe that this summit marks an important step toward creating a safer online environment in Pakistan … We’re dedicated to promoting digital literacy and online safety through our initiatives, and we look forward to continuing our collaboration with the PTA to achieve this goal.”
In August, the Pakistan Business Council (PBC) warned that frequent Internet disruptions and low speeds caused by poor implementation of the national firewall had led many multinational companies to consider relocating their offices out of Pakistan, with some having “already done so.” The Pakistan Software Houses Association (P@SHA), the country’s top representative body for the IT sector, warned this week Internet slowdowns and the restriction of VPN services could lead to financial losses and closures and increase operational costs for the industry by up to $150 million annually.
Pakistan’s IT and ITeS exports have been growing at an average of 30 percent per year, and are on the way to achieve over $15 billion in the next 5 years, according to industry data, provided the government ensures continuity in export, fiscal, financial, SME, infrastructure and IT policies.
“If the VPNs are blocked, most of IT companies, Call Centers, BPO [business process outsourcing] organizations of Pakistan will lose all the major Fortune 500 clients, as well as others – as data protection and cybersecurity are of paramount importance to our clients, and connecting to client systems through VPN is a global norm and standard, and is a basic requirement and expectation of clients around the world,” P@SHA Chairman Sajjad Mustafa Syed said in a statement released on Tuesday.
“Additionally, no international company of any size tolerates any intrusion into their security protocols by any private or public institution.”


Pakistan consults UN agency to shape National Intellectual Property Strategy

Updated 22 November 2024
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Pakistan consults UN agency to shape National Intellectual Property Strategy

  • Intellectual Property Organization of Pakistan emphasizes ‘culture of innovation and creativity’
  • Consultations focus on challenges, recommendations, impact of intellectual property policies

ISLAMABAD: Pakistan has held consultation sessions with a United Nations agency to develop the country’s National Intellectual Property Strategy (NIPS), state-run media reported on Thursday.
A NIPS is a comprehensive framework designed to promote and protect intellectual property rights, drive innovation and foster economic growth.
The two-day consultation sessions, which included panel discussions on challenges, recommendations and the impact of various strategies on Pakistan’s geo-economic landscape, were organized by the Intellectual Property Organization of Pakistan (IPO-Pakistan) in collaboration with the World Intellectual Property Organization (WIPO), a specialized UN agency.
“IPO-Pakistan in collaboration with WIPO successfully concluded its two-day consultative sessions for the development of Pakistan’s National Intellectual Property Strategy,” Radio Pakistan reported.
IPO-Pakistan Chairman Farukh Amil emphasized the need to cultivate a “culture of innovation, creativity and respect for intellectual property rights.”
He underscored the importance of integrating intellectual property education into industries and academia, stressing that awareness among youth and students was key to promoting innovation and creativity.
Amil also thanked WIPO for its partnership and expertise in shaping Pakistan’s National IP Strategy.
“The consultative sessions featured insightful panel discussions on three key areas: Summary of Main Challenges and Recommendations for National Intellectual Property Strategy (NIPS), Impact of IP Strategies on Pakistan’s Geo-Economic Situation, and Way Forward for National IP Strategy Development,” state media reported.
Established in 1967, WIPO plays a pivotal role in shaping global intellectual property policies while promoting innovation, creativity and economic development worldwide.
IPO-Pakistan, launched in April 2005, serves as Pakistan’s leading institution for intellectual property protection and promotion.
By streamlining intellectual property management, it contributes to the country’s economic growth and development, supporting innovators, entrepreneurs and artists to position Pakistan as a responsible member of the global intellectual property community.