SNB

Consequent to substantial reduction in fuel prices, I have directed the concerned authorities at Federal and Provincial level to activate a strict price control mechanism. I urge all honorable Chief Ministers to ensure that prices of essential commodities and services are reduced correspondingly. All efforts should be directed towards transferring the benefit of reduction in petroleum prices to the people of Pakistan. Strict implementation be ensured.

Two men are gambling on the sinking Titanic. One of them is cheating. Many people resemble these two in real life.

To unbundle electricity pricing or not? A lot of people suggesting that electricity pricing should be unbundled, so that electricity can be sold at a different price in Lahore rather than Peshawar. The theory is, because there is greater theft in Peshawar, they deserve to get more expensive electricity in Peshawar. It's not that simple. You cannot just unbundle what you want. KP would accept such a solution, but not in isolation. 1. You would first need to look at generation. The cheapest electricity produced countrywide is from Tarbela, at around Rs 1 / unit. The 4000 MW is enough for all of KP. Why not then unbundle the generation, so every province has first right over the electricity produced within? You could then unbundle consumer pricing too. If Punjab has first right over its atta, why shouldn't KP have first right over its electricity? 2. Someone might argue, constitutionally electricity generation is a federal subject, and Tarbela has been made with federal funding. Also no problem, but in that case the entire constitutional scheme of Net Hydel Profit payments to KP, amounting to Rs 500-600 bln per year now, is also in the same constitution scheme of things. We could certainly decouple electricity pricing if those NHP payments were made, and KP could subsidise electricity for its consumers. 3. You would also need to consider that at the moment KP is providing hundreds of megawatts of free electricity to the national grid from provincial dams, because the federal govt is not finalising a tariff for those KP projects. This is KP's gift to the people of Pakistan. 4. When pricing is decoupled, you would need to consider why KP only has transmission capacity of around 1900 MW Vs peak demand of 3200 MW, and you would need to compensate for that lack of investment; a similar lack of investment in PESCO of Rs 30-40 bln, compared to Punjab, would also be required for a level playing field so consumers get the same quality service as they do in Punjab. 5. Similar to electricity, pricing for gas would also need to be decoupled completely, and KP given full rights over its gas as per Article 158 of the constitution; again, gas supply would be enough to serve KP's needs over the next ten years. 6. If the question, as often stated, is about lack of provincial cooperation in controlling theft, it may interest people to know that there is only one DISCO with close to 100% non-payment from domestic consumers. It is TESCO, which looks at ex-FATA. Funny that this state of affairs was in an area that was federal until recently, and where the federal govt had full control of the administration. 7. Also, the elephant in the room is capacity payments. Capacity payments are not KP's problem, with peak demand being less than Tarbela's capacity. So in decoupling the consumer price, capacity payments would also need to be charged to provinces with the greatest demand for peak electricity. Moral: solutions in isolation don't work, and only risk further raising social discontent. Suggest the federal caretaker govt simply focus on ensuring free and fair elections, and leave policy decisions to those with a mandate from the people.