Too little, too late

The government’s energy conservation plan, unveiled at a time when Pakistan faces its worst ever economic crisis, is a step in the right direction, though it came too late and was thrust without due consultation from various stakeholders. The measures suggested in the plan include closure of markets and wedding halls at 8:30 and 10 pm respectively, slashing the government’s power consumption by 40 percent, and using energy efficient vehicles and appliances. These measures would not only help reduce the use of costly imported energy products that remain a burden on the national exchequer, but also nudge citizens towards a healthy and eco-friendly sustainable lifestyle. Yes, Pakistan cannot turn a blind eye to the causes of the devastating floods of 2022 – the result of global warming and massive environmental degradation. Therefore, protecting the environment should remain at the heart of any plan aimed at cutting down the use of fossil fuels. Yet, the government’s energy conservation plan seemed to have missed the mark on many counts.

Firstly, due to the sharp political polarization in the country, the issue became a political football between the incumbent government and the opposition. The minority government of Shehbaz Sharif lacks credibility and goodwill among the people to pull off any kind of reforms. In simple words, it lacks the trust of a vast number of Pakistanis. Secondly, these measures, although important, would have been much more impactful had they been introduced six months ago, during the summer, when our energy consumption is at its peak. Now these measures appear half-baked and disjointed. Energy efficient fans, light bulbs and motorbikes alone cannot salvage a drowning economy, especially against the backdrop of concerns about who are the “lucrative” contracts awarded to, and which politically-connected business would benefit when the government shifts its building to solar energy.

Thirdly, an important aspect that the federal cabinet appears to have missed out on is the method the government would implement the ‘judicious’ energy conservation plan. Without offering any incentives to the people, to convince them and ensure they replace their old energy guzzling vehicles and appliances already in use with the new energy efficient ones in itself will be a daunting task. Fourthly, Pakistan’s sharp political divide has already made the implementation of the plan doubtful, if nothing else, the Punjab and Khyber Pakhtunkhwa governments’ unwillingness to implement the austerity measures even before they were put to use has already dealt the conservation plan a severe blow.

Sixthly, concern is that the austerity measures seem to be targeting only the common Pakistanis, already hit hard by the highest ever inflation and slowdown in economic activities. But what is the powerful elite sacrificing to alleviate some of that burden? The leisurely lifestyle of the ruling elite at the expense of a vast majority of Pakistanis continues uninterrupted. What measures has the government taken to cut down its own expenditures for that matter? Has it reduced the fuel quota accorded to the ministers? Has it decided to cut down the size of the security protocol they travel in? Is Shehbaz Sharif cutting down the size of his huge cabinet? No. The government should have slashed international travel for both tourist and religious purposes that only the well-to-do can afford. This could also contribute to curbing the dollar demand.

A significant factor in Pakistan’s current economic situation is its ever-expanding energy sector circular debt, which now stands at a whooping Rs4.2 trillion – Rs2.6 trillion for power sector and Rs1.6 trillion for the gas sector. Pakistan has trapped itself between a rock and a hard place. While it is crucial to resume the IMF’s stalled programme, it would further push the prices of fuel, electricity and gas up to unmanageable levels. It is imperative that the government, together with these policies, improves its energy distribution system, control distribution and transmission losses and curtail electricity theft. It will also need to consider alternate forms of energy production and do away with its current dependency on producing energy through imported oil.

This dire situation requires bold and pragmatic policies, but can an unpopular government, which lacks credibility and is fighting for its very survival, pull Pakistan out of the stormy waters? The chances are slim.