The Punjab government on Friday announced that residents of the province utilizing up to 500 units of electricity per month will see their bills in August and September slashed by Rs. 14/unit as partial “relief” against the hefty power tariffs that have triggered sporadic protests nationwide.
Pakistan Muslim League (Nawaz) President Nawaz Sharif announced the initiative in a video statement, stressing that the subsidy would be funded with cuts to development schemes. Flanked by his daughter, Punjab Chief Minister Maryam Nawaz, he said it pained him to see people struggle with paying electricity bills that he described as excessive.
“The Punjab government will provide a relief of Rs. 14/unit in electricity bills up to 500 units for August and September,” he said, adding this subsidy equaled Rs. 45 billion, which would be funded by reducing government expenses, including development schemes. “The government has cut expenditure in various sectors, reduced development funds and diverted the money for this relief,” he said, as he praised Maryam for working to secure relief for the public.
It remains unclear what specific development schemes or government expenses are being slashed to fund the subsidy.
Sharif also referred to a solar panel scheme announced by the Punjab government earlier this year, saying the initiative would also help reduce the burden of electricity bills on the public. That scheme, he claimed, would cost Rs. 700 billion.
Noting that the Punjab government had taken the lead, he urged all other provinces to announce similar relief to the people through their own budgets. He also claimed that Prime Minister Shehbaz Sharif would soon announce “major” relief for the entire nation.
The announcement has been praised by residents of Punjab, but has drawn criticism from residents in other provinces, who have questioned why the scheme funded by the provincial government does not apply to them. In a statement, the prime minister praised the package for electricity consumers in Punjab announced by his elder brother and niece. “The decision to reduce electricity rates … is a notable example of a people-centric initiative by Nawaz Sharif and the Punjab chief minister,” he said, adding the federal government had earlier announced relief for consumers using up to 200 units/month.
‘Not our fault’
In his address, Sharif also sought to shift blame about the prevailing inflation and utility bills onto the Pakistan Tehreek-e-Insaf (PTI)-led government. “It was the PTI government that caused inflation and price hike,” he claimed, adding his last tenure as prime minister in 2017 had seen average electricity bills of Rs. 1,600 for the impoverished. The same person, he lamented, was now receiving bills of Rs. 18,000/month.
As per tradition, Sharif also reiterated questions over the reasons for his ouster in 2017. “I again ask today why I was ousted from power in 2017 by the Supreme Court for not taking a salary from my son’s firm. The country was wronged by this decision, which made the lives of the masses miserable,” he maintained, claiming “conspiracies” had hampered Pakistan’s progress. “Who would invest in a country where the interest rate is 19%?” he asked.
“I would like to ask who is responsible for the current economic situation and the people’s misery,” he asked, before pointing to the PTI-led government and then-prime minister Imran Khan. He claimed his government had “ended” the reliance on the International Monetary Fund (IMF) but the PTI’s economic mismanagement had forced the country to return to it.