The 2 percent hike in electricity prices will do nothing but add to the misery of the already suffering public. The inflation in the prices of petrol and electricity is of the kind that triggers inflation in prices all round as these things are a significant part of the manufacturers/producers cost. The governments fiscal and monetary policy are both contributing to the untamed rise of inflation and the financial planners of this country are being unbelievably short-sighted while implementing measures.
While there is an argument to be made that tough times call for tough measures, there is also an argument to be made that tough times do not call for stupid and suicidal measures. We need to see how the long-term detriment of a certain measure offsets its short term efficacy. Raising electricity prices serves no purpose, whether now or later. Even the increase in revenue it generates will be meaningless as the value of money rapidly deteriorates due to the consequent inflation.
Quick fixes and one-dimensional solutions will not help Pakistan as it needs a comprehensive and holistic economic strategy to take it out of the economic quagmire it is currently in. The government should also have some (if not much) consideration for the suffering public. This raise in the electricity tariff will break the back of the afflicted common man. I hope that the government will look into this policy and review it as hope is all that we can do.
NAZIR AMJAD
Lahore