Transparency In Recoveries

Asem Mustafa Awan

Islamabad: Interim Prime Minister Anwaarul Haq has declared a resolute commitment to supervise the enforcement of strategies aimed at countering power theft, hoarding and smuggling. Furthermore, he has pledged that the campaign against smuggling, hoarding and power theft will be conducted without bias, ensuring that those engaged in these unlawful practices are held responsible for their actions.

The electricity situation in Pakistan presents a stark contrast. On one hand, ordinary citizens are resorting to desperate measures, such as selling household furniture and jewellery, to cover their electricity bills. On the other hand, government offices, including the Foreign Office, Prime Minister House, Federal Board of Revenue (FBR), Sindh House, Punjab House and various ministries in Q-Block, are accumulating substantial unpaid electricity bills, creating financial strain with millions owed in arrears.

Equally troubling is the widespread problem of electricity theft. During a meeting of the Standing Committee on Energy in the National Assembly, it was revealed that there were 55,000 complaints of electricity theft in a year. Shockingly, only 528 people were arrested out of the 20,000 FIRs filed. This suggests a systemic issue in effectively addressing electricity theft.

The cost of electricity theft has reached an alarming Rs 500 billion, further contributing to the escalating cost of electricity for law-abiding citizens.

Additionally, the power sector provides electricity either partially or fully to public sector employees based on their pay scales. This subsidy for public sector employees amounts to around 300 free units per month, with an annual cost of approximately Rs 24 billion.

To make electricity more affordable for all citizens, the key solutions lie in tackling electricity theft and negotiating lower rates with Independent Power Producers (IPPs).The ongoing crackdown on theft is a step in the right direction, but it must be sustained and applied without bias.

One of the most distressing consequences of this mismanagement is the imposition of extra surcharges on honest consumers to cover the shortfalls in recoveries.

The crackdown on electricity and gas theft operations has gained momentum across the country. With 378 people arrested for electricity theft and 326,000 cases of gas theft identified over the past three years, it is evident that the government is taking concrete steps to curb these illegal practices. The increase in anti-theft measures is largely in response to public pressure following a significant increase in electricity prices.

Recent protests against high electricity bills and rising fuel prices have further highlighted the urgency of addressing this issue and rationalizing electricity rates.

Energy Minister Muhammad Ali has received instructions from the Prime Minister to crack down on electricity thieves, reduce theft and collect unpaid bills.

The protests over high electricity bills have exposed the struggles of financially distressed citizens who find it increasingly difficult to cover their energy costs. A major contributing factor to this crisis is corruption within the power distribution sector, with influential individuals in parliament and institutions often tolerating or encouraging theft in their areas.

One promising solution to combating electricity theft is the installation of indicators in electricity meters. These indicators would display a green light for legitimate connections and a red light for illegal ones. The red light would only be deactivated once fines are paid electronically, reducing opportunities for corruption.

The rising revolving debt in Pakistan, which reached Rs 2.536 trillion by December 2022, is a pressing concern, with electricity theft being a significant contributing factor. The burden of unpaid bills in areas plagued by theft is shifted onto consumers in other regions.

The irony of the fact is that Caretaker Prime Minister and seven former prime ministers reaped the benefits of the National Accountability Bureau (NAB) amendments which the top court declared null and void on Friday.

The list of beneficiaries from the now-annulled NAB amendments extends beyond PM Kakar and includes the Sharif brothers, Yousaf Raza Gilani, Shahid Khaqaan Abbasi, Shaukat Aziz, Raja Pervez Ashraf, and Shujaat Hussain.

Among the other notable beneficiaries of these amendments were former President Asif Zardar; his close associates Anwar Majeed and his son Abdul Ghani Majeed; Hamza Shahbaz; Shaukat Tarin; Senator Abdul Qadir; Senator Rubina Khalid; Senator Yusuf Baloch; Saleem Mandviwalla; former Provincial Minister Rehmat Ali; Asfand Yar Khan Kakar; and former Punjab Assembly Speaker Sibtain Khan.

The list also includes the names of Nawab Aslam Raisani and Lashkari Raisani. Former PM Nawaz Sharif, a co-accused in the Toshakhana reference, also benefited from these amendments. Apart from these political bigwigs, several bureaucrats also benefited from these amendments.

Lahore Electric Supply Company (LESCO) charged 304 power pilferers with detection bills of 711,109 units worth Rs 30,205,018 (over 30 million) during the ninth day of the grand anti-power theft operation in all its circles on Friday.

The gains from all these recoveries should be distributed fairly and transparently to the poor, who find it hard to sustain themselves. Every day, people commit suicide due to high bills and the struggle to obtain essential items. Will this recovered money be used for their benefit or disappear into unknown destinations, much like the list of 628 people who received interest-free loans amounting to $22 billion and the State Bank refused to disclose their names?

The writer is a journalist based in Islamabad and writes on a wide range of issues.

The article is the writer’s opinion, it may or may not adhere to the organization’s editorial policy.

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