Why is electricity so expensive in Pakistan? - Big Revelation - Big News - video Dailymotion

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Transcript

00:00 The most expensive electricity we are producing is from RNG.

00:04 The rate of LNG is around Rs. 24.

00:08 And the cost to the public is Rs. 62.

00:11 So the difference of Rs. 48 is all that the people call surcharges,

00:19 capacity charges, fuel cost, fuel surcharge, television fees.

00:24 All these amounts are coming from there.

00:26 Why is there a difference of Rs. 48? Why are we paying Rs. 48 extra?

00:31 These are taxes. But whose fault is it? Whose fault is it? Whose mismanagement is it?

00:35 It's a simple thing. They didn't even judge what the international prices were.

00:40 When solar could be installed in a country, and you had installed solar,

00:43 you should have gone for solar and worked more on that.

00:47 Whatever we did, we did it on imported fuel.

00:50 All the 10,000 megawatts of CPEC were imported on coal, on RNG.

00:55 It was imported from everyone.

00:57 The price of your local coal is half that of imported coal.

01:01 Now, if you talk about gas, a unit of Rs. 12 is made from gas.

01:05 A unit of Rs. 24 is made from LNG.

01:07 Two power plants in Kerala, one in Sait and one in Kaurangi,

01:10 are just lying there because they don't have gas.

01:13 If they make it from LNG, it will cost Rs. 24.

01:15 If they make it from national gas, it will cost Rs. 12.

01:18 So this is a big difference.

01:20 We have an agreement with NEPRA.

01:25 We have to pay Rs. 2,112 billion for capacity charges.

01:29 And what is the bill for the entire year?

01:31 Rs. 1,000 billion.

01:32 We have to pay double the charges.

01:34 Capacity charges, in simple words, are the charges that we have agreed upon

01:38 and we have to pay the prices.

01:40 That is, the original bill is more than double the prices

01:44 that we have to pay for these agreements.

01:46 Is this correct understanding?

01:47 Yes, we have agreed upon the charges.

01:48 Whether we take electricity from them or not, we have to pay.

01:51 And this happened during the PTI era

01:53 that the dollar exchange rate was capped at Rs. 148.

01:57 If it was at Rs. 290 or Rs. 300 today,

02:00 then the capacity charges that we are paying now,

02:02 we would be paying Rs. 2,000, maybe Rs. 3,000 more.

02:05 And this will increase in the next 5 years.

02:07 Because the capacity charges that we have,

02:09 they must be paying 22% interest.

02:11 Then there will be about 20% inflation in the country.

02:14 This will have a negative impact on people.

02:16 Electricity will be becoming expensive.

02:17 That is, fuel costs will be becoming expensive.

02:19 Agreements will also be becoming expensive.

02:20 So we will have to arrange for about Rs. 4,000 billion next year.

02:24 We will have to increase the electricity rates.

02:26 The IMF has just told us to cap our circular debt at Rs. 2310 billion.

02:33 That will go up by Rs. 160 billion in this year.

02:36 For that, we will have to increase electricity by Rs. 2 billion.

02:39 Whereas, there will be a difference of Rs. 5.

02:41 So, electricity will be expensive between July and August.

02:45 And if you don't do it, then it will be difficult for you to get it through the IMF.

02:50 If you don't pay it, then you will have to pay interest from the banks.

02:54 So, there will be constant losses.

02:57 And then, the agreement, because we will go to the agreement in 2028 and 2032,

03:03 and we will be free of the agreement.

03:05 If people go to solar, then we say that we will charge them Rs. 2,000 per kilowatt.

03:12 Because the big business of Pakistan, the industrialists,

03:16 who use clean units, they are sharing all the burden.

03:20 Poor industrialists, industrialists, and shopkeepers.

03:24 Now, when they go to solar, then you say that the electricity bills of both industrialists and shopkeepers,

03:31 they have a 2.5% withholding tax, income tax.

03:35 How will you get that?

03:37 The income from the FBI will be finished.

03:39 That's why they don't want solar to go to a high level.

03:41 And small ones, 5 megawatts, 10 megawatts, they use.

03:45 So, the electricity agreements, for their sustainability,

03:50 in Pakistan, it doesn't suit the state to go to solar.

03:54 Because how will they return the money?

03:56 They have to earn money from there.

03:58 Is this the right assessment?

03:59 Yes, absolutely.

04:00 The easiest thing is to put everything in the electricity bills.

04:02 Everything, electricity fees, now even the radio fees has started coming in the electricity bills.

04:06 So, whatever is easy, you put all the agreements in it,

04:10 put all the revenues in it, on the electricity bills, and they keep taking from people.

04:14 Tell me, when will our life be spared?

04:16 Because the agreements that we have made, obviously,

04:18 the commitments of the Pakistani state, we have to fulfill them.

04:20 How long are these our commitments?

04:24 And when will our agreements mature?

04:26 If we want to do this in a chaotic way, we can do it.

04:29 The reason is that our electricity is being depleted because of the furnace oil,

04:32 and because of the losses of this gas, and because of the losses of electricity.

04:35 If we talk to the IMF and the UN,

04:38 that our capacity charges are depleting our electricity, increasing our deficit,

04:42 then we should renegotiate them.

04:44 Or we should finish them, which we don't want to use.

04:46 In the world, furnace oil is not being used anywhere.

04:48 It is used in 3-4 countries in Africa.

04:50 So, we should spare their lives. Why should we pay their capacity charges?

04:53 But we have made agreements. How can we do it?

04:56 How long are these agreements? Till 2023?

04:58 Till 2028, till 2022. But they can be renegotiated.

05:01 The reason is that you are the biggest destroyer of the climate in the world.

05:05 Pakistan has lost $30 billion.

05:07 And we should talk to the IMF on a chaotic basis,

05:10 that after our climate change, our losses,

05:12 we should spare their lives.

05:14 And we can talk about this at the international level.

05:16 Thank you very much, Mr. Shoaib Nizami is present with us.

05:19 Why is electricity expensive in Afghanistan?

05:21 What are the hidden taxes? What are the hidden costs?

05:24 Why are you paying extra Rs. 48 per unit of tax?

05:30 We tried to understand this.

Why is electricity so expensive in Pakistan? - Big Revelation - Big News

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