Rioters on the road
The ongoing energy crisis, with unscheduled outages ranging from 12 hours to 18 hours, has hit all the four provinces with almost equal ferocity. The power breakdowns have slowed down the wheels of industry and in cases brought them to a grinding halt. Businesses have suffered and trading centres have lost their glamour. Power shortages, also causing scarcity of potable water, have added to the miseries of the common man. This explains the widespread protests which were transformed at places in Punjab into power riots. Unless the government takes tough decisions, the country is likely to face the spectre of a total shut down.
PM Gilani has convened an energy conference inviting all the chief ministers to suggest measures to overcome the problem. What is needed is realistic and firm decisions to deal with the crisis. Routine meetings are likely to create a perception of the government looking busy while doing nothing. While a number of factors, like the closure of two nuclear power plants at Chashma, decline in hydel generation and reduced production by Pepco have contributed to the severity of the power crisis. The most outstanding reason behind the phenomenon is the failure of the government to find a solution to the circulatory debt. Pepco owes Rs 210 billion to power generating companies. They in turn have failed to pay PSO the outstanding bills amounting to about Rs 155 billion, leading the oil marketing company to suspend its supplies to the companies. Media reports tell of ADB showing willingness for once-off financing of circulatory debt provided the government stops subsidising energy for short term political goals. Pursuit of short time political gains must not be allowed to lead to economic disaster.
Equally dangerous is the attempt to try to get political mileage out of the power crisis as was done by Shahbaz Sharif. The Punjab CM has said that his province is being victimised by the centre, conveniently forgetting that power shortages are affecting the other three provinces also. He complains that as he was not provided a helicopter by the centre he does not recognise Zardari as President. He has also threatened to issue a call for a long march. This is highly preposterous in a situation where the country faces a crisis of great magnitude.