Pathetic Economic Situation in Pakistan

According to a report, the electricity rates are expected to be increased by 40 percent during the year. According to a report by an English journalist, this is necessary due to the agreements done with the International Monetary Fund (IMF). It has been further stated in this regard that an agreement took place between the Pakistan government and the World Bank and the Asian Development Bank (ADB) on 21 May 2009 that the electricity rates will be increased by 26 percent. While, according to the country report published by the IMF in August 2009, Pakistan Electric Power Company (PEPCO) has suggested an increase of 17.5-41.5 percent in the electricity rates.

Increase in Electricity Rates
In addition, it is being stated in this regard that because of the rental power plants, an increase of 41.5 in electricity rates is necessary instead of a 26 percent increase. In addition, a subsidy worth 55 billion will be removed and the electricity rates will be increased in three different phases. Whereas, Prime Minister Yousuf Raza Gilani has said that price determination of electricity and gas rates is the job of the National Electric Power Regulatory Authority (NEPRA) and Oil and Gas Regulatory Authority (OGRA). He further stated that the government is providing a subsidy of 55 billion rupees on electricity. In the future, will these subsidies stay or not? This decision will depend on the conditions.

According to a second report, there was fighting between the ministers on the issue of increase in electricity rates. State Minister for Finance Hina Rabanni Khar said that because of an agreement with the IMF, it is important to increase the electricity rates. Whereas, Interior Minister Rehman Malik believed that if the electricity rates are increased it would create a law and order problem.

Providing Public Service
These are the reports of the institutions which have been entrusted with the task of providing public service. The basic purpose of presenting these reports was to present the situation in front of the public regarding the state of these national institutions and the people who are at the helm of affairs in these institutions. In addition, what are these people entrusted with the responsibility of running the affairs of the company doing to resolve the problems facing their respective companies and the way in which they are handling the affairs of the company. Also, what is their vision regarding their respective companies and how have the companies changed as a result of the implementation of their policies. If we take the example of the electricity companies, we can easily see how serious our rulers are in addressing the electricity problems. In addition, what policies have they made to address the problem of electricity.

From this situation, it has become evident that the masses or the public are not the real stakeholders in this scenario, instead all these things are being decided on the recommendations and suggestions of the World Bank, ADB and IMF. In reality, these are not recommendations or suggestions, they are the orders given by these economic institutions. What are the conditions of these agreements and are these suitable for the Pakistani people and our nation. The answer to this should be given to the nation by the president and the prime minister. In addition, they should also tell the benefits that will accrue to the masses from this or is this a program to snatch all the benefits or luxuries available to the masses.

On 18 February, the public elected this present government into power so that they at least hold/cease the country in the situation that was created during the Pervez Musharraf and Shaukat Aziz regime. Lawlessness, inflation, unemployment, closure of businesses, worsening of the economic situation, and the continuous load shedding problem and as a result of all this is a continuous pattern of difficulties and problems. In addition, the news that there will be a meteoric rise in the rates of electricity and gas coupled with this news that the prices of petroleum products will be increased after an average of 15 days.

Grim Political Situation
These are certain highlights of the performance of the present government. Leave the political situation in the country aside, which includes the continuous presence of 40 NATO troops on the Pak-Afghan border and the continuous series of suicide attacks, bomb attacks and drone attacks and the general helpless of the government in this regard. This includes the preparations by India of a civil war in the country. This situation has been prevalent in the country since the Musharraf rule, which the public was expecting that the newly elected government will pay attention to these matters upfront. Now after an experiment of two years, the only change or addition that has taken place in front of the eyes of the nation is that there has been an increase in the number of foreign visits. This gives an impression that they have been elected for foreign visits and their lottery has come out in this regard. A debate on other issues is not going to be fruitful.

Various groups of people on this situation comment that the only change that has taken place in Pakistan is that instead of Musharraf and Shuakat Aziz, Asif Zardari and Gilani have taken their place. Otherwise, if the performance of the government is analyzed in the above given categories then one can easily say that no significant change has taken place even the first step towards development and progress has not been taken in these respective sectors. The only difference that has taken place is that notable people like General (retired) Aslam Beg have started saying that drones responsible for carrying out attacks in Pakistan are taking off from the Pakistani soil.

Whereas, in other matters, the pattern of "increases" is taking place whether it is an increase in the prices of daily necessity commodities, increase in the prices of petroleum products or in the rates of electricity and gas. As if the only work given to the incumbent and the past government was to increase the prices of the daily commodities for the common man. We can talk to the president in this regard when he would prefer to come back to his home country. The Prime Minister has already clearly stated that determination of rates for electricity and gas is the job of NEPRA and OGRA.

Declining Industrial Output
It should be remembered that the Prime Minister Gilani had given an indication to the public to prepare themselves about impending electricity, gas and other crisis. Is not this the job of the government to stop this meteoric rise in prices? The electricity has become so expensive that every person from an ordinary citizen to an industrialist is fed up with it. The 40 percent increase in electricity rates is done in one go or in three phases, the impact will be the same in both these cases. The Rental Power Plants (RPPs) are being purchased on rent at the same cost as if they had been formally acquired in one go. Then, why are they being purchased on rent? The Prime Minister should tell the nation about it. In addition, the electricity that will be produced from these rental power plants will be available at the rate of 30 rupees per unit, which will also be a burden to bear for the industrialists and as a result the remaining industries will also be forced to close down. In answer to this Madam Hina Rabbani Khar is saying that due to the agreements with the IMF this increase is necessary. This proves that our rulers are more concerned about IMF and ADB, while they are not even concerned about the general public.

While presenting the current budget, she criticized the previous government which she was a part of. The economic and financial policies of the current government, recently presented by her, are also in front of us. Being the state minister for finance, her statements cannot be considered to be her personal opinion; in fact her statement was a representation of the official stance on this issue.

Increase in the Inflation Rates
From this situation, it is pretty clear that no change that has taken between the past and the present government except that it is a mere change of face, increase in the inflation rates, and the surrender of the nation and the public in front of the IMF and the World Bank. In addition, those groups that say that the present government is merely a continuation of the past government, and the present government like the past one are the commission agents of the IMF and the World Bank, their point of view is quickly turning into a reality in the light of these facts. Whether it is the president, prime minister or the economic advisors of the government, all seem to act as the spokespersons of the IMF and the World Bank. This is also pretty evident that the nation and the public will be on the losing end as a result of these deals and agreements. These people are the persons assigned with the task of protecting the national interests and it is their duty of providing the public with the basic necessities of life. So, whom should we complain in this scenario?

At least, the increasing inflation in the country and the general worsening situation in the country should be addressed; otherwise, analysts say that if the government persists with such policies for another one and a half year then such a civil uprising and unrest will take place in the country which the government will be unable to control. The place in history that our current rulers shall have will be determined by their own decisions.