The Prime Minister’s directive to formulate a strategy to stabilise electricity tariffs is a welcome admission that the current state of energy pricing is unsustainable. By seeking a mechanism to curb the erratic fluctuations that have plagued the power sector, the government is finally addressing the primary source of anxiety for millions of consumers.
Such a move is commendable, as it acknowledges that the current pattern of sudden price hikes is a failure of planning rather than an inevitability of the market. The benefits of achieving tariff stability are manifold. For the average household, the ability to predict monthly expenditures is a basic requirement for financial survival in an era of rampant inflation. For the industrial sector, stability is the prerequisite for investment; no business can plan for growth when the cost of its primary energy input is subject to the whims of a monthly review. A predictable pricing regime would alleviate the systemic stress on the economy, potentially lowering the cost of production and, by extension, the cost of living.
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However, the emphasis must remain on the word “strategy”. For too long, Pakistan has operated on a cycle of emergency policy work, where the government reacts to a crisis with a temporary fix, only to find itself facing a larger crisis a few months later. This “firefighting” approach to energy management is a symptom of a deeper lack of foresight.
The goal should be a system where tariffs are governed by a transparent, predictable formula rather than the abrupt directives of the Power Division. Until the state moves away from the habit of emergency management, any “stabilisation” will be merely a temporary reprieve. The true test will be whether this strategy provides a permanent solution or simply another temporary patch on a leaking vessel.
