The federal government has revealed a new set of austerity measures that seek to save energy costs amid a heightening economic crisis. Looking for ways to rein in inflation and conserve resources, PM Shahbaz Sharif is looking to shut down restaurants and markets at 8 pm. Wedding hall timings will be limited to 10 pm. The plan comes a day after the prime minister organised a high-level meeting to deliberate the technicalities of our debt crisis, specifically circular debt in the energy sector. By pushing our energy sector to generate more revenue, the government hopes to ease the pressure on the economy, which has already committed itself to structural adjustments as per the advice of the International Monetary Fund.
The plan also hopes to introduce energy-efficient light bulbs and fans to ease the pressure on Pakistan’s fragile energy economy. The government also appears to be in consultation with a manufacturing company that specialises in electric bikes in the hopes that more people will opt for energy-efficient transport. Energy-efficient equipment is crucial for any economy that hopes to achieve sustainable economic growth. By halting the production of incandescent bulbs and inefficient fans and taxing manufacturers who continue employing these practices, the government hopes to institute a shift towards more sustainable energy sources.
Consumers in Pakistan are often inclined to buy the cheapest products in the market, however, they don’t realize that this burdens them with higher operating costs for years to come. The majority of consumers do not invest in energy efficiency even when the economic costs outweigh the upfront costs of the initial investment. By paying a larger sum up front, consumers can enjoy a larger stream of economic savings in the future. Consumers everywhere are more likely to ignore ancillary costs when making a purchase. It is the government’s job to introduce energy efficiency standards and labels that prescribe the minimum energy requirements of manufactured products. Without this crucial information, consumers are unable to make informed decisions about the true cost of a product. It also disincentivizes manufacturers from complying with energy performance guidelines as there is no way for the market to recognize and value this aspect. With technical support and labelling programmes, the state can help protect the population from these products and gradually increase electrical energy consumption instead. For Sharif’s plan to bear fruit, the masses must be made acutely aware of these dynamics-it remains to be seen whether the government has the tact to follow through. *