LAHORE: Mandatory cooperation between the federal regulators and the provincial governments is essential to ensure compliance on issues that impact the common man.
Power theft is rampant all over the country. Some theft relates to the connivance between the officials of power distribution company and the consumers. But substantial theft occurs as many localities do not bother to obtain proper connections. Instead these localities use electric wires that are attached to a hook. The hook is connected to the live wires on electric poles; the practice is also known as ‘kunda’.
These localities (not a single household) consume free electricity through kunda. The staff of the power distribution company dare not remove these illegal connections because they fear the mob that attacks and threatens them away.
Staff requires support of the provincial police to apprehend these cheats, but that is rarely provided to them. In the same way, some influential consumers do not pay their monthly bill, but when staff tries to disconnect them from the grid they attack the staff as there is no police force to assist them. The loss to exchequer on both these counts is in hundreds of billions of rupees that are regularly added to the circular debt.
The Oil and Gas Regulatory Authority (OGRA) has to ensure that the liquid petroleum gas cylinders are refilled by licensed agents. Refuelling of auto-rickshaw cylinders by connecting it to a bigger cylinder at public places is banned.
It is hazardous as the gas could catch fire during the transfer process. In fact this practice has taken many lives in the past. OGRA staff that are limited do point out this regulation from time to time to all provincial authorities. Some do take action for a while but these outlets are re-established after some time.
Once these unethical practices are pointed out by the regulator, it should be the responsibility of each provincial government to ensure that no illegal LPG filling outlets operate in the areas under their control.
State Bank of Pakistan regulates the foreign exchange companies operating in Pakistan. No other organisation, outlet or a person is authorised to deal in foreign exchange. But we find many individuals roaming in the streets where foreign exchange companies are located and convincing the buyers or sellers that they would give them a better rate. This way they not only confuse the customers but also swindle them.
Among them are many hundi or hawala operators that illegally bring in or move out foreign exchange from the country. The State Bank officials do try to scare them away with periodic raids without much assistance from provincial law enforcers.
These swindlers come back a few hours or a day after the raids and resume their operations. They are spread all over the country, particularly in all cities with a population of two million or more. The central bank cannot reach all these places, but the provincial authorities can. They should assist and facilitate the SBP to get rid of this menace.
Central regulators need full assistance and cooperation of all provinces to ensure that all their regulations are enforced in letter and spirit. Gas theft, power theft and foreign exchange outflows would continue unabated if the provinces fail to act in cohesion with the regulators.
