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, ADB ink $61.8 million agreements for three development projects

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Pakistan, ADB ink $61.8 million agreements for three development projects

  • Agreements pertain to the upgradation of ML-1 railway link, key bus project in Quetta and water sector development in Balochistan
  • Pakistani official says projects will “significantly contribute” to long-term, sustainable economic growth, address infrastructure needs

ISLAMABAD: Pakistan and the Asian Development Bank (ADB) on Friday signed agreements for three major development initiatives worth $61.8 million to boost connectivity, urban transport and water sector in various parts of the country, state-run media reported. 

The two side signed agreements relating to project readiness financing for the Karachi-Rohri Section of the Main Line-I, a critical link needed to transport copper and gold from the Reko Diq mine in southwestern Pakistan to export hubs, for $10 million. 

Another project readiness financing agreement was signed for a bus rapid transit project in the southwestern city of Quetta worth $3.8 million. The last agreement pertained to additional financing for the Balochistan Water Resources Development Sector Project, which amounts to $48 million. 

“The secretary, Ministry of Economic Affairs, expressed appreciation for ADB’s role as a trusted development partner, and its continued support to Pakistan to complement the development agenda of the country,” the state-run Associated Press of Pakistan (APP) said. 

He said the critical projects would “significantly contribute” to Pakistan’s long-term and sustainable economic growth, address urban infrastructure needs of the provincial capital of Quetta, and enhance agricultural productivity in Balochistan.

ADB’s Country Director for Pakistan Emma Fan appreciated Pakistan’s commitment toward development initiatives. 

“She also reaffirmed ADB’s continued commitment to working closely with the Ministry of Economic Affairs and other stakeholders to ensure its support remains aligned with Pakistan’s development priorities,” APP said. 

ADB has undertaken initiatives to support Pakistan’s economic recovery by strengthening its public finances, social protection systems and helping Islamabad with its post-flood reconstruction efforts. 

The bank says it has committed 764 public sector loans, grants, and technical assistance to the South Asian country totaling $43.4 billion to date.