A recent report has exposed the illicit practice of electricity distribution companies in a single province of the country, revealing an illegal collection of 675 billion rupees annually through overbilling from conscientious consumers who diligently pay their bills on time.
In the economic hardships faced by the people of Pakistan, where rulers, elites, bureaucratic extravagance, and corruption play a significant role, a major contributing factor is the exorbitant cost of electricity. A stark revelation emerges when comparing the electricity prices paid by Pakistani consumers with those in neighboring countries like India and Bangladesh.
The cost of electricity per unit in Pakistan exceeds 52 rupees, a staggering difference when compared to an average of 14 to 15 rupees per unit for Indian consumers. Even when factoring in the depreciation of the Pakistani rupee against the Bangladeshi taka, a unit of electricity in Bangladesh costs 6.7 taka, equivalent to 12 rupees and sixty paise in Pakistani currency.
Surprisingly, in Sri Lanka, a country officially declared bankrupt, the cost of electricity is lower than in Pakistan. Despite the already elevated cost of 52 rupees per unit, there seems to be no respite as the incompetence of rulers and commission-driven administrative officers persist, preventing any signs of stability in electricity prices.
The primary cause of electricity shortages in Pakistan lies in its inefficient and convoluted system from generation to distribution. Capacity charges, line losses, and theft further contribute to making electricity the most expensive in the region. Addressing these issues is crucial for reducing the overall cost and benefiting the nation.
Forcing a financially strained nation to purchase electricity at a significantly higher price domestically than imported alternatives is a grave injustice. Revisiting and nullifying the harsh contracts made with power generation companies in the 1990s, which have been repeatedly extended, is imperative. A new agreement must be established to liberate the Pakistani nation from the burden of capacity charges and usher in a fairer and more sustainable electricity pricing structure.
