Pakistan forms task force on rising power tariffs as religio-political party continues protests

Jamaat-e-Islami (JI) party chief, Hafiz Naeem-ur-Rehman (left), is addressing party activists and supporters in a demonstration against the country's rising inflation in Rawalpindi on August 7, 2024. (@JIPOfficial/X)
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Updated 08 August 2024
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Pakistan forms task force on rising power tariffs as religio-political party continues protests

  • Around 3,000 Jamaat-e-Islami supporters have staged sit-in in Rawalpindi since July 26 against inflation, high electricity costs
  • On Wednesday, the JI threatened to launch a civil disobedience movement if the government did not meet its demands

ISLAMABAD: Federal Minister for Information Attaullah Tarar on Wednesday announced a positive round of talks with the leadership of a religio-political party protesting against inflation and high electricity prices in Pakistan, saying the government had constituted a task force to deal with the issues. 

Thousands of supporters of Jamaat-e-Islami (JI) party have set up a protest camp in Rawalpindi since July 26, highlighting the rising tax burden on the people of Pakistan and demonstrating against the escalating electricity tariffs due to the capacity charges of independent power producers (IPPs) in the country.

These charges refer to the payments made by the government to the IPPs for maintaining the availability of electricity, regardless of how much of it is ultimately consumed.

The capacity charges have become a significant point of contention as they contribute to the circular debt in the energy sector and lead to high electricity tariffs.

“Jamaat-e-Islami’s demand is on our agenda to reduce electricity prices,” Tarar was quoted as saying by the Associated Press of Pakistan (APP) news agency. “Our negotiations have been adjourned until tomorrow. Even today, there has been a lot of progress in the negotiations.”

“A task force has been set up to look into the issues of IPPs,” he added.

Tarar said Prime Minister Shehbaz Sharif has taken measures to reduce power tariffs in the country, including a subsidy of Rs50 billion to electricity consumers using up to 200 units in the months of June, July, and August.

The JI chief, Hafiz Naeem-ur-Rehman, told journalists his party would continue its sit-in and take its protest to Lahore, Peshawar, and Multan.

The JI has already started staging a sit-in in Karachi in front of the Sindh Governor House.


Pakistan’s first female central bank governor dies at 71

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Pakistan’s first female central bank governor dies at 71

  • Shamshad Akhtar led the State Bank of Pakistan from 2006 to 2009 and later served twice as caretaker finance minister
  • Finance Minister Muhammad Aurangzeb describes Akhtar as an accomplished economist and an outstanding human being

KARACHI: Shamshad Akhtar, Pakistan’s first woman to serve as governor of the central bank and one of the country’s most internationally experienced economic policymakers, died at the age of 71, officials said on Saturday.

Akhtar led the State Bank of Pakistan from 2006 to 2009, becoming the first and only woman to lead the institution since its establishment in 1948. She later served twice as caretaker finance minister, overseeing fiscal management during transitional governments ahead of the 2018 and 2024 general elections.

According to local media reports, Akhtar died of cardiac arrest.

President Asif Ali Zardari expressed sorrow over her passing in a statement.

“The president paid tribute to her services in the field of economics and financial management, noting her contribution to strengthening economic governance in the country,” the presidency said, adding that he extended condolences to the bereaved family and prayed for the departed soul.

Finance Minister Muhammad Aurangzeb described Akhtar as a highly accomplished economist and an outstanding human being.

“Dr. Shamshad Akhtar was a dignified, principled and wise voice in Pakistan’s economic history,” he said.

He said she served Pakistan with integrity and dedication across several senior economic roles, adding that her national service would always be remembered with respect.

At the time of her death, Akhtar was serving as chairperson of the Pakistan Stock Exchange, a role that placed her at the intersection of Pakistan’s monetary policy, fiscal management and capital markets.

Beyond Pakistan, she held senior positions at major international institutions, including the World Bank, the Asian Development Bank and the United Nations Economic and Social Commission for Asia and the Pacific.

Born in Hyderabad, she was educated in Karachi and Islamabad and held advanced degrees in economics from institutions in Pakistan and the United Kingdom.

Akhtar was widely regarded as a technocrat known for institutional discipline, policy continuity and a strong commitment to economic reform.

With input from Reuters