Beyond the blame game

The Economic Coordination Committee meeting on Tuesday, chaired by Finance Minister Asad Umar, was widely expected to approve massive increases in power tariffs. The government had delayed pushing price increases until after the October 14 by-elections out of fear that the step may negatively affect its performance at the polls. As it happened, the ECC once again kicked the can down the road, saying it could not discuss the issue as Power Minister Omar Ayub was not present. But at a press conference after the meeting, Information Minister Fawad Chaudhry strongly hinted at imminent price increases. He said the state was losing Rs1.2 billion per day in electricity subsidies, and blamed the previous PML-N government for setting up costly power projects. He also blamed the PML-N for not making the difficult decision to increase power prices while it was in power. This is an interesting reversal from the PTI which strongly criticised the PML-N for removal of subsidies when it was sitting on the opposition benches while it is the PML-N which is now going after the government for taking the same steps it did when it was in power.

Hypocrisy aside, the PTI government has very little option but to increase power prices. The IMF will demand reducing subsidies as a non-negotiable condition for agreeing to another bailout package. The high international price of oil has increased Pakistan’s import bill and the government – whether the PTI now or the PML-N earlier – showed no appetite for taking on power theft or improving transmission and distribution losses. There is much blame to go around for this but it is worrying that the PTI is focusing exclusively on the PML-N as a way of avoiding responsibility. It is telling that the ECC decided to audit power plants set up by the previous government and may even get the National Accountability Bureau involved. At a time when there is a lot of doubt about the independence of NAB, it may be better if all audits are carried out by outside experts. Any audit should also include projects carried out by provincial governments, including those in Khyber Pakhtunkhwa where the PTI was in power. Financial accountability should not be deployed as a tool against political opponents. It is clear that the previous government made many mistakes in economic matters but our problems will only become worse if the current setup decides to criminalise policy differences. We are in a precarious position right now with the IMF possibly set to involve itself even further with its destructive dictation. There is a need for political unity – rather than starting another round of the blame game – to get us back on the right track.