Tuesday, October 4, 2011

Daily Times editorial Oct 5, 2011

The crisis deepens

The violent protests rocking the country, with Punjab as their epicentre, against prolonged scheduled and unscheduled load shedding has added the latest nail in the coffin of the present dispensation. The protestors vented their frustration and anger at electricity deprivation for long hours of the day and night by attacking electricity distribution companies’ offices, vehicles and other government property. Some collateral damage to private property also occurred, especially when charged up crowds were subjected to ruthless police action involving water cannon, tear gas, firing and the ubiquitous lathi (baton). The country was roiled by the violent protests and the police’s violent response almost throughout its length and breadth. It was inevitable then that these events should find an echo in the proceedings of the National Assembly. Turning roundly on the government, opposition parties led by the PML-N lambasted the treasury benches for caring not a fig for the misery of the people. Households’ inconvenience has been added to by the impact on industry and commerce, with closures and inability to do business fully producing lay offs and further unemployment. Without means to purchase high priced food, and suffering the unwanted attentions of the dengue mosquito in darkened communities, is it any surprise that the citizen has said ‘Enough!’ This is not to justify the violence on display, only to point to the reasons for such seething anger that can no longer be mollified by sugarcoated assurances. The police’s harsh methods may have succeeded partially in rolling back what threatened to become a countrywide tide of fury and destruction, but unless things improve, this could well be just a lull before fresh storms.
Unfortunately, our political class is unable to rise above itself even in moments of such momentous national crisis. The tired old mutual blame game is predictably on display again. While the government is on the defensive, some at least in the opposition may see this as a heaven sent opportunity to rock the ruling party back on its heels. Nawaz Sharif’s PML-N seems to have decided to jump into the load shedding fray and lead what it hopes will transform into a political movement to unseat the present incumbents. It must be admitted that the latter have not done their cause much good. It is being put about that the present unprecedented energy deficit is first and foremost due to the circular debt, secondarily (and temporarily) due to reduced irrigation discharges from the dams that lead to reduced hydel power, and last but not the least, breakdowns in the nuclear power plants at Chashma. The first at least has been in public knowledge ever since this government came to power. It took the unprecedented breakout of virtually countrywide riots to induce this government to announce that it was releasing Rs 11 billion to the energy sector to re-enervate the at a standstill KAPCO and HUBCO, which will add 2,000 MW to the system. It boggles the mind why the government could not have done this earlier and staved off the crisis. Compared to the reported figure of Rs 300 billion circular debt, this is a mere drop in the ocean. In addition, the government has decided to institute conservation measures such as two weekly off days and shutting down markets by 8:00 pm. Although this is estimated to save 1,000 MW, it is not certain if the provinces will go along, especially since the chief ministers absented themselves from the energy conference chaired by the prime minister. In addition, the government proposes a 12-16 percent electricity tariff increase, sale of government paper to the banks, and a loan from then ADB to address the circular debt. The first proposal promises more protests. The other two may be more feasible. Let us not overlook the fact that traders and businessmen in various parts of the country are threatening to withhold their electricity bills unless the present situation improves markedly.
As if the woes of KESC’s customers are not an object lesson, the government proposes the privatisation of nine more generation plants, a move critiqued by Transparency International on precisely these grounds. The government had better get its priorities right. First and foremost, it has to address the present miseries of the citizen and business by ensuring an improvement in power generation as quickly as possible. All other ideas will have to wait until this is achieved. Otherwise the hopes of the opposition to use this crisis for political gains in the shape of a generalised movement against the government may well turn out to be a self-fulfilling prophecy.

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