Poverty in Pakistan is not a temporary issue but a deep-rooted problem tied to the country’s electricity tariffs. The Ministry of Planning, Development, and Special Initiatives revealed that around 50 million Pakistanis were below the poverty line in 2018, a number that surged to nearly 70 million by 2024. The average electricity tariff, which was Rs 11 per unit in 2018, has now escalated to about Rs 50 per unit, leading to significant economic repercussions.
The rise in power tariffs has had severe consequences in Pakistan, reshaping the way people survive and impacting their daily lives. This shift has transformed electricity from a basic necessity to a financial burden, influencing food choices, consumption patterns, and overall quality of life. As electricity costs soar, households are forced to make difficult adjustments, compromising on nutrition, education, and healthcare to cope with the escalating expenses.
Government policies play a pivotal role in determining how individuals and families adapt to the escalating electricity tariffs. The cost of living adjustments, such as switching from costly proteins to cheaper alternatives like lentils, reflect the harsh reality faced by many Pakistanis. Additionally, the burden of high electricity prices extends beyond financial strain, affecting education, healthcare, and overall well-being, pushing many middle-class households towards poverty.
The root cause of Pakistan’s current plight lies in past policy decisions that led to exorbitant electricity generation costs. Projects like the Roush Power Limited and the China Power Hub Coal Power Project, initiated under government policies, have significantly contributed to the soaring electricity prices. The repercussions of these decisions are felt across all sectors, with higher production costs translating into increased prices for essential goods and services, perpetuating the cycle of poverty for many Pakistani households.
