Misplaced priorities

Our governments know how to keep the public on the edge of the precipice. The present government is considering reducing the pay-back tariff for solar system users by the power grids. People were sick of the shortage of electricity and gas in their homes, and many decided to install solar panels atop the roofs of their homes to save themselves from paying exorbitant bills to any of the DISCOs.

Installing a solar panel system is no ordinary matter; it costs a fortune. Rooftop solar system owners believe that once they have invested, however heavily, they will get financial respite in the future. But the government didn’t appreciate the idea that people saved money by generating their own electric energy and avoiding using the power produced by the influential IPP owners who enjoy sovereign guarantees. Instead of negotiating with the IPP owners to act rationally during a struggling national economy, the government is considering devising an easy way out – squeezing domestic and industrial solar system owners.

Prime Minister Shehbaz Sharif said in a federal cabinet meeting that agreements with five IPPs would be terminated and would save Rs411 billion annually and reduce the burden on the power consumers by Rs60 billion. In the first phase, agreements with Hubco, Lalpir, Saba Power, Rousch Power, and Atlas Power will be terminated. What’s the progress on the decision? The public would like to know.

Since taxing solar power owners is a fresh case under consideration, it’s taken as government highhandedness against solar energy consumers. The government's intention to reduce the solar panel tariff to Rs7.5-11 per unit from the existing Rs21 per unit at which electricity is given to the national grid through the net metering system is highly objectionable. Instead of cutting down its expenses by drastically reducing the size of bureaucracy and its perks and privileges, it has decided to squeeze domestic solar system users.

Similarly, some power plants and many DISCOs were earmarked for privatisation but they continue to operate – much to consumer dismay. Other than naming the DISCOs after big cities – Lesco for Lahore, Fesco for Faisalabad and Pesco for Peshawar etc – no change in the supply of electric power occurred. These companies, however, are overstaffed and headed by CEOs who pocket a few hundred thousand in salary every month.

There are other public-sector projects, which I like to call 'blackholes'. For instance, the privatisation of PIA is testing the patience of the taxpayers. The national airline has devoured billions of public money but the concerned officials entrusted with its privatisation continue to make inane statements occasionally. Sometimes friends bet with one another whether the PIA will ultimately be privatised or some government functionaries and the vested interests find a way around it to keep it in the public sector to milk it. When Airblue and AirSial in the private sector are operating successfully, why can't PIA?

Some joint ventures of companies were interested in taking over the PIA but quoted far below what the government expected. Finally, these companies lost interest and only one company, Blue World City Consortium, offered its bid. And the bid was appallingly low – Rs10 billion while the Privatisation Commission demanded Rs85 billion.

The difference was huge and bridging such a differential could only be a pipedream. However, Privatisation Minister Abdul Aleem Khan recently stressed the need to continue inviting offers for PIA's privatisation.

Now that the European Aviation Safety Agency has lifted the ban on PIA flights to Europe, it should not be a matter of consolation for the government to postpone its privatisation process. With the removal of the ban, PIA is likely to attract more bidders with better offers compared with the puny bid of Rs10 billion and asking price of Rs85 billion.

Why is all quiet in the case of another huge loss-maker – the Pakistan Steel Mills? There was a time when Russia and China offered to take it over but the government at the time played delaying tactics. The political interests of politicians and others employed in the mills on high salaries led to the issue being placed on the back burner. PPP leader Bilawal Bhutto openly opposed the privatisation of the PSM.

The government must value public tax money and privatise loss-makers like PIA and the PSM. It must trim its bureaucracy and withdraw glossy SUVs and new cars from officials. Sparkling luxury vehicles and protocols irk taxpayers. Lastly, to revitalise the economy, the prime minister may keep in mind that it’s not the job of the government to undertake commercial ventures.

The writer is a freelance columnist based in Lahore. He can be reached at: pinecity@gmail.com