Going by their plans – those responsible have eventually inflicted another punch to the people by increasing the rates of power by another 6 per cent – with effect from October-1.
Stories about the hike in electricity tariff were hovering over the horizons – over the past few weeks. The then anticipated and now imposed increase – was instantly resisted by almost all segments of the society – whereby a message was put on wires by the stalwarts – negating such a plan or proposal.
Nonetheless, the ‘clarification’ beamed to the nation stands proved other-way-round – as the increase in power rates has given yet another jerk and jolt with an atypical shock.
Credible sources envision that the government is seemingly committed to a 24% cumulative increase in tariffs over the next 12 months – with the first trek of 6 per cent – which has come insight on October-1.
Analytically, the increase in power tariff sounds conflicting to the efforts of the government to contain inflation as the hike is – by all means – bound to add to the persisting inflation. The reason being; the fuel and lighting articles constitute roughly around 7.29 percent of the CPI basket.
Simple mathematics shows that for every 10 per cent increase these articles contribute 0.7 per cent to depict the trends of inflation.
Amid continuous declining trends of economy a recent report had narrated the appalling magnitude of inflation in Pakistan.
To this effect, the data unfolded by the Federal Bureau of Statistics spoke of the scenario. It indicated that inflation stepped-up to a three-decade high in recent past – placing hefty pressure on the common man.
As per report, transport and communication costs soared 40 to 50 percent while food and beverage prices increased by over 34 percent. Similarly, fuel and lighting costs jumped over by almost 21 percent.
By all realities, these are official estimates which are generally believed to be much lower than the actual market rates.
But even these figures are mind boggling and portray the economic conditions of the inflation-hit people.
True that food prices have increased elsewhere in the world as well. Yet in our case these have gone up irrationally – prima facie – due to lack of grip by those responsible to ensure affluence.
If they would have focused on economic issues, such a situation would certainly not have surfaced.
With eruption of problems at a swift pace – an opinion is growing fast that the democratic government – which was expected to pursue people welfare-oriented policies – has so far remained away from such initiatives.
Though this time the prices of the petroleum products have been slashed – as a peanut –they are all sure to reverse to the higher level in times – not far off.
As is manifested by past experience – not only that the prices of oil were increased to a great extent but those responsible also seemed disinclined to reduce them after record fall in oil prices in the international market.
To recap, this had prompted the Senate Committee on Cabinet and Special Initiatives to urge the government to undertake down-ward revision of the oil prices.
The set-up has now set in motion a record increase in the electricity tariff while gas rates have also been hiked without any justification.
The cumulative effect of all this is the increase in the cost of living and this has made life of the fixed income groups miserable.
As such policies are causing despondency – we feel optimistic that the ongoing strategy shall be reviewed to provide – at least a little bit of relief to the people through administrative and fiscal measures.
Of-course, strict measures to stop unnecessary expenses can help a lot to overcome perils to economy – if not swiftly – by all mean steadily, for the eventual good of the nation – which is already faced with multiple challenges. No-doubt, these challenges are known to all – running the affairs of the country.
Back to the fresh hike in power tariff – the reality can not be denied that it shall not only add still more gloom among the people but would also adversely affect the industry – which by all perceptions – is the treated as the backbone of the national economy.
On account of electricity, people have already been deprived of the subsidy – a relief which was abruptly withdrawn. Even to the extent that the amount involved for subsidy – was later recovered from the consumers – in ‘installments’.
Paradoxically, the people can’t get back to the old-age lamps – because the price index of kerosene oil has also swelled – beyond the level of the reach of the poor and middle class.
Thus, along with prolonged electricity load shedding their seems to be no justification in increasing the rates of power – especially when the people are already facing manifold problems – even vis-à-vis the edibles to live-on.
We therefore feel optimistic that the government shall reconsider its decision of hike in power tariff – and shall reverse it swiftly.
With this vision, the electricity generating sets-up are ought to be advised to put their vital task and house in order by caging line losses plus allied expenses through a better governance – which is much needed for these organizations.
Published as received through email***
Stories about the hike in electricity tariff were hovering over the horizons – over the past few weeks. The then anticipated and now imposed increase – was instantly resisted by almost all segments of the society – whereby a message was put on wires by the stalwarts – negating such a plan or proposal.
Nonetheless, the ‘clarification’ beamed to the nation stands proved other-way-round – as the increase in power rates has given yet another jerk and jolt with an atypical shock.
Credible sources envision that the government is seemingly committed to a 24% cumulative increase in tariffs over the next 12 months – with the first trek of 6 per cent – which has come insight on October-1.
Analytically, the increase in power tariff sounds conflicting to the efforts of the government to contain inflation as the hike is – by all means – bound to add to the persisting inflation. The reason being; the fuel and lighting articles constitute roughly around 7.29 percent of the CPI basket.
Simple mathematics shows that for every 10 per cent increase these articles contribute 0.7 per cent to depict the trends of inflation.
Amid continuous declining trends of economy a recent report had narrated the appalling magnitude of inflation in Pakistan.
To this effect, the data unfolded by the Federal Bureau of Statistics spoke of the scenario. It indicated that inflation stepped-up to a three-decade high in recent past – placing hefty pressure on the common man.
As per report, transport and communication costs soared 40 to 50 percent while food and beverage prices increased by over 34 percent. Similarly, fuel and lighting costs jumped over by almost 21 percent.
By all realities, these are official estimates which are generally believed to be much lower than the actual market rates.
But even these figures are mind boggling and portray the economic conditions of the inflation-hit people.
True that food prices have increased elsewhere in the world as well. Yet in our case these have gone up irrationally – prima facie – due to lack of grip by those responsible to ensure affluence.
If they would have focused on economic issues, such a situation would certainly not have surfaced.
With eruption of problems at a swift pace – an opinion is growing fast that the democratic government – which was expected to pursue people welfare-oriented policies – has so far remained away from such initiatives.
Though this time the prices of the petroleum products have been slashed – as a peanut –they are all sure to reverse to the higher level in times – not far off.
As is manifested by past experience – not only that the prices of oil were increased to a great extent but those responsible also seemed disinclined to reduce them after record fall in oil prices in the international market.
To recap, this had prompted the Senate Committee on Cabinet and Special Initiatives to urge the government to undertake down-ward revision of the oil prices.
The set-up has now set in motion a record increase in the electricity tariff while gas rates have also been hiked without any justification.
The cumulative effect of all this is the increase in the cost of living and this has made life of the fixed income groups miserable.
As such policies are causing despondency – we feel optimistic that the ongoing strategy shall be reviewed to provide – at least a little bit of relief to the people through administrative and fiscal measures.
Of-course, strict measures to stop unnecessary expenses can help a lot to overcome perils to economy – if not swiftly – by all mean steadily, for the eventual good of the nation – which is already faced with multiple challenges. No-doubt, these challenges are known to all – running the affairs of the country.
Back to the fresh hike in power tariff – the reality can not be denied that it shall not only add still more gloom among the people but would also adversely affect the industry – which by all perceptions – is the treated as the backbone of the national economy.
On account of electricity, people have already been deprived of the subsidy – a relief which was abruptly withdrawn. Even to the extent that the amount involved for subsidy – was later recovered from the consumers – in ‘installments’.
Paradoxically, the people can’t get back to the old-age lamps – because the price index of kerosene oil has also swelled – beyond the level of the reach of the poor and middle class.
Thus, along with prolonged electricity load shedding their seems to be no justification in increasing the rates of power – especially when the people are already facing manifold problems – even vis-à-vis the edibles to live-on.
We therefore feel optimistic that the government shall reconsider its decision of hike in power tariff – and shall reverse it swiftly.
With this vision, the electricity generating sets-up are ought to be advised to put their vital task and house in order by caging line losses plus allied expenses through a better governance – which is much needed for these organizations.
Published as received through email***
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