ISLAMABAD: A Pakistani religious political party which has been holding a two-week-long sit-in in the garrison city of Rawalpindi against inflation and high electricity costs said on Friday it was calling off its protest after reaching an agreement with the government.
Around 3,000 supporters of the Jamaat-e-Islami party, demanding that the government withdraw taxes on electricity to offset price hikes, have occupied a road in Rawalpindi since July 26. The government had formed a committee to hold negotiations with protesters, with many rounds of talks held.
Talks resumed on Tuesday this week after a five-day hiatus and concluded late Thursday night following three rounds of negotiations.
“This sit-in has been called off as the government has asked to give 45 days to implement the agreement,” JI negotiation team head, Liaqat Baloch, told Arab News, saying all details of the agreement would be shared with the media in a press conference later today, Friday.
“The government has agreed to form a task force to implement JI demands by conducting an audit of IPP [Independent Power Producers] agreements, and form a mechanism to reduce electricity prices,” he said, adding that the task force would submit its report to the prime minister for approval within 45 days.
“This phase of the sit-in has been fully called off, and the next course of action will be determined after the 45-day deadline, based on the government’s performance in implementing the agreement,” Baloch added.
Agreements with the IPPs have come under scrutiny in recent weeks as households have received steep electricity bills. Many members of the public and independent policy analysts say Pakistan has been saddled with electricity bills it has no possibility of paying because of faulty contracts signed with IPPs, which produce expensive power.
Speaking to participants of the sit-in after concluding talks on Thursday night, Interior Minister Mohsin Naqvi, who led the government negotiating team along with information minister Attaullah Tarar, said it was important to “respect the sentiments of the public.”
“Electricity prices will be reduced as all of us intend to provide relief to people,” Naqvi said.
“We assure them [JI] that the demands of the sit-in will be implemented,” Tarar added.
The government raised power prices 26 percent during the last fiscal year, which ended June 30, before tacking on another 20 percent increase on July 13. Officials say the increases were needed to meet conditions set by the International Monetary Fund for a $7 billion loan deal reached last month.
The government has also added a confusing bevy of taxes on top of the base price, adding up to a bill that has more than doubled for some Pakistanis.