Market traders strike in Pakistan over power bills and inflation
Public markets across Pakistan were closed due to a strike by retail associations over rising electricity prices, exacerbating the country's economic recovery challenges.
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Posted 9/2/2023, 3:05:00 PM
reuters.com
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Protests have erupted across Pakistan due to the recent increase in electricity prices, which are causing financial strain on households already dealing with high inflation and stagnant incomes, and the government's inefficiency in reducing transmission losses and indirect taxes is exacerbating the problem.
The high prices of electricity in Pakistan are a result of misgovernance in the power sector, including indirect taxes, losses in the system, expensive production, and the cost of generating electricity in new plants.
The Pakistani government plans to reopen over 1,600 textile industries that were shut down in the past 16 months, aiming to unlock the country's full production capacity potential by providing competitive energy pricing, working capital support, speedy refund payments, enhanced market access, and product diversification. This comes as the overall export earnings in August show a modest month-on-month recovery, with a 14.27% increase. The government also plans to revive regionally competitive energy tariffs to support the industrial sector and boost exports.