In 2008, when PPP’s government
came in power, it was propagated in media that the real cause of electricity
crises in Pakistan is the lack of production capability. We were told that we
are facing load-shedding because our demand is higher than supply and the
previous governments did not work on new projects and therefore supply cannot
meet the demand. At that time the government showed that if we want to overcome
the crises, we have to accept the expensive Rental Power Projects (RPPs). But
these RPPs could not become functional because opposition did not accept these
projects and billions of rupees of the nation were transferred in the accounts
of the rulers, while the nation still facing a miserable situation by load
shedding. But when the previous government reached to the end of its term and
the caretaker government was formed, a sudden change occurred in the supposed
basic cause of this miserable situation and it was said that the installed
capacity of power production in Pakistan is much higher than our demand.
Figures were published in newspapers that in 2008 our installed capacity was
near 20 thousands megawatt, which has been increased to almost 21500 megawatt,
while our demand in winter is near 13000 megawatt and in peak summer it is
almost 16500 Megawatts. Further it was said that the real cause of crises is
circular debt which has been produced because of the heavy subsidy given by the
government in this sector. So power producing companies are forced to produce
less to prevent more loss and therefore nation has to face miserable situation
of load shedding. All those politicians, whether they are from previous
government or from the new government, who were propagating in previous years
that we do not have enough capacity, are now all declaring circular debt the
main cause.
A question comes in mind as to why the cause of this crisis has been changed?
The answer is that this change happened in February 2013, when talks between
Pakistani authorities and IMF began on the issue of rescheduling of the previous
loan and the possibility of issuing a new loan. IMF made clear that if Pakistan
wants rescheduling or a new loan, then she has to enforce economic reforms of
IMF which are firstly an substantial increase in taxes and secondly, an end to
all government subsidies.
After these talks we can see a heavy load shedding in the country, with the
caretaker government announcing that we are unable to pay power sector, so we
have to face heavy load shedding. Even some power companies gave advertisement
in newspapers that their power plants are completely shut down, because their
dues are not paid by the government. And they announced that they will not start
production without getting their dues. The real reason behind this heavy load
shedding and highlighting the issue of circular debt is that when new government
will enforce the IMF solution, then the people of Pakistan will accept this,
people whose lives have been turned into a hell by this load shedding. So during
the budget speech Finance Minister, Ishaq Dar, announced that his government
will soon end all subsidies in power sector to deal with circular debt. So it
was necessary to take some serious steps before the arrival of IMF delegation
due on 19th of June 2013.
So we can see a substantial increase in taxes in the new finance bill and on the
other hand the new Prime Minister Nawaz Shareef approved an increase of 2.5 Rs
per unit in electricity tariff and asked for a plan to end all other subsidies
in power sector. On 19th of June 2013, the IMF delegation arrived and after
talks, it was announced in the national newspapers that rescheduling or a new
loan is conditional with the enforcement of economic reforms from IMF which are,
again, a substantial increase in taxes and an end of all government subsidies.
Thus the government announced that it is possible to increase power production
by ending subsidies in power sector, confirming she has agreed to enforce the
economic reforms asked by IMF.
The economic reforms of IMF are based on this simple formula that financial
deficit must be covered by new taxes and by ending all subsidies. They don’t
care that the people who will pay new taxes are already in a miserable situation
because of previous taxes. So it is obvious that by the enforcement of IMF
solution problems of Pakistani people will further increase.
The real solution only for this problem is the enforcement of economic system of
Islam. It is forbidden in Islam to give public properties in the hands of
private sector. . RasulAllah (saw) said, الْمُسْلِمُونَ شُرَكَاءُ فِي ثَلَاثٍ
الْمَاءِ وَالْكَلَإِ وَالنَّارِ “The Muslims are partners in three things,
waters, feeding pastures and fire.” (Ahmad). So such things which are needed by
the entire society, can’t be privatized. And all these matters are provided to
the people at cost price at most, or near it, and without taxation. And in this
way private sector and government exploitation of these public properties is
abolished. Moreover, Islam forbids joining such organizations which are based on
Kuffr or its affair are dominated by Kuffar. Allah Subhana Watala says, وَلَن
يَجْعَلَ ٱللَّهُ لِلْكَافِرِينَ عَلَى ٱلْمُؤْمِنِينَ سَبِيلاً “And never will
Allah grant to the disbelievers a way (to triumph) over the
believers.”(Al-Nisa:141). In this way, Islam gives a protection to human beings
from IMF and such other colonial organizations. This is the only solution
through which people of Pakistan can get rid of this severe load shading crisis.