DECISIONS of the Economic Coordination Committee of the Cabinet (ECC), which met in Islamabad on Thursday, once again proved that there was no harmony in the policies and actions of the Government. It once again jacked up the support price of wheat taking it to Rs. 1365 per 40 kilogram, opted for more increase in the power tariff over and above what was previously envisaged for the quarter and delayed provision of Rs. six billion to the Utility Stores Corporation, which were to be used for supply of food items to the poor on subsidized rates.
The measures approved by the ECC are in direct conflict with the stated claims of the government to mitigate sufferings of the people who are facing hardships due to ever-rising inflation. How price-hike can be checked when the government itself is repeatedly increasing electricity and gas tariff and is also enhancing support price for wheat which is staple food for people of Pakistan. We have been emphasizing in these columns that no one would object provision of benefits and facilities to farmers in the backdrop of rising cost of production but the objective can easily be achieved by bringing down the prices of inputs. Similarly, there is no doubt that the circular debt has increased significantly during tenure of the present Government but increasing the electricity tariff further is no viable solution to the issue. Irrational hike in electricity tariff impacts upon commercial, industrial and agricultural activities besides upsetting the budget of the common man. Why the Government is not delivering satisfactorily on the front of electricity theft and line losses? Apart from individual thieves, there are departments and provinces that do not pay for the electricity consumed by them and the burden is put on the honest consumers. The proposal to privatize efficient discos (IESCO and LESCO) is also unfortunate as the government is opting for getting rid of profit-making entities and retaining those that incur losses and are a burden on the national exchequer. ECC ought to safeguard interests of the ordinary citizen and not privileged and influential ones.
