Pakistan Faces Nationwide Protests as Electricity Bills Surpass Rent Costs

To most Pakistanis, electricity bills are now more expensive than renting a house, igniting nationwide protests as the government implements tariff hikes and reforms aimed at meeting the conditions for the $7 billion loan from the International Monetary Fund.

Electricity prices in Pakistan have increased 155% since 2021. In July, the average residential tariff increased by 18%. The country has increased measures in a bid to secure loans from the IMF amid an economic crisis, where nearly half the population lives on less than $4 a day. At 12%, inflation remains Asia's highest and has continued to erode purchasing power, and electricity consumption remains at a four-year low as households and businesses increasingly shift to solar power to escape the high costs of the gas-powered national grid.

According to Samiullah Tariq, a head of research at Pakistan Kuwait Investment Co., electricity bills are now more than monthly rents, which range between $100 and $700 for most residents.

The spread of discontent pushed Prime Minister Shehbaz Sharif to announce a three-month Rs 5,000 crore ($180 million) subsidy for the poorest electricity consumers. Citizens, business groups, and political parties continue protesting across the country.

The energy sector, Pakistan said in a report it filed in line with the IMF bailout package, is being revitalized with a promise of curbing wastage through measures that cut cost and the privatisation of state-owned power distribution companies. This is despite attributing about 16% of losses on the generated electricity because of theft and inefficiencies of transmission and distribution by the national power regulator.

The energy crisis had become a political flashpoint in the ongoing economic woes of Pakistan by underlining an urgent need to balance financial soundness with people's welfare with structural reforms.

Energy efficiency is emerging as a major solution for the energy woes of Pakistan, and reducing costs, enhancing energy security, and making it sustainable. Technologies such as FORCE have already cut consumption by 10-15%, and many more similar technologies stand ready to provide quick relief to consumers who are already overburdened. In such straitened times, the adoption of measures as ENPOSS can accelerate energy efficiency across all sectors to alleviate energy poverty, leading to a greener and more sustainable future for everyone.