Lahore – Jamaat-e-Islami (JI) Emir Hafiz Naeem ur Rehman on Tuesday laid out a sweeping set of demands for economic and policy reforms in Pakistan, calling for an end to payments to Independent Power Producers (IPPs), significant reductions in electricity tariffs, and the complete abolition of the petroleum levy. Rehman also emphasized the demand for renewed regional cooperation in the wake of recent conflicts in the Middle East, particularly concerning Iran. The proposals, delivered at a press conference in Mansoorah, reflect growing public frustration with Pakistan’s persistent economic challenges and its energy sector woes.
The core of Rehman’s argument centers on the financial burden imposed by IPPs, which he claims are receiving payments for electricity that isn’t even being used. He urged the government to immediately halt these “capacity payments,” arguing that they represent a significant drain on the national treasury. This demand comes as Pakistan grapples with a severe energy crisis, characterized by frequent power outages and soaring electricity bills. According to data from the National Electric Power Regulatory Authority (NEPRA), the circular debt – the accumulated debt across the power sector – stood at over PKR 2.6 trillion (approximately $8.7 billion USD) as of December 2023. NEPRA is the regulatory body overseeing the power sector in Pakistan.
Demanding Austerity and Revenue Generation
Beyond the IPP issue, Rehman proposed a series of austerity measures aimed at reducing government spending and increasing revenue. He called for the shutdown of inefficient thermal power plants, the imposition of taxes on wealthy landowners – often referred to as “feudal elites” – and a rollback of recent salary increases for parliamentarians. He specifically suggested restoring parliamentary salaries to their pre-increase levels. Further, Rehman advocated for the sale of state-owned assets, citing an aircraft used by Maryam Nawaz and a luxury vehicle allocated to the Senate chairman as examples, with the proceeds deposited directly into the national treasury.
“The current economic policies are unsustainable and disproportionately burden the common citizen,” Rehman stated. “We need a fundamental shift towards austerity, transparency, and equitable taxation.” He also called for restricting official vehicles to engines of 1300cc or less, a measure intended to curb extravagant government spending.
Regional Stability and the Iran Conflict
Rehman also addressed the escalating tensions in the Middle East, particularly following recent exchanges between Iran, and Israel. He stressed the importance of regional cooperation and urged the immediate resumption of work on the long-delayed Pakistan-Iran gas pipeline project. The pipeline, initially conceived in the 1990s, has faced numerous obstacles, including international sanctions and political hurdles. Reuters reported in January 2024 that Iran and Pakistan agreed to boost trade and energy cooperation.
He further proposed expanding the existing defense agreement between Pakistan and Saudi Arabia to include Iran and Turkey, arguing that a broader regional alliance would serve as a deterrent against external aggression. Rehman cautioned against actions that could be perceived as supporting U.S. Or Israeli interests, warning that campaigns against Iran would indirectly benefit those powers. He also praised religious scholars, including Mufti Taqi Usmani and Mufti Muneeb ur Rehman, for their efforts to promote unity during this period of regional instability.
Criticism of Western Policies and Global Power Dynamics
Rehman leveled strong criticism at Western policies, particularly those of the United States and Israel, regarding the ongoing conflict in Gaza. He condemned the large-scale civilian casualties and asserted that Gulf states were beginning to recognize that U.S. Strategic priorities were increasingly aligned with Israel. He also claimed that former U.S. President Donald Trump was influenced by a “Zionist nexus,” a statement that reflects a long-standing critique within some segments of Pakistani political discourse.
Addressing domestic economic issues, Rehman highlighted the significant imbalance between Pakistan’s installed power generation capacity and actual demand. He argued that successive governments have failed to adequately plan for the country’s energy needs, leading to a situation where surplus electricity could be utilized more effectively through investments in data centers and industrial expansion. He attributed Pakistan’s economic decline to a lack of strategic vision and widespread mismanagement.
The JI chief reiterated his party’s commitment to peaceful political resistance and urged authorities not to suppress protests. He also called for a transparent investigation into deaths that occurred during protests outside the U.S. Consulate in Karachi, demanding accountability for any wrongdoing. He also stated his belief that Western systems were failing and that Islamic principles offered viable solutions to global crises.
Rehman concluded by calling for improved relations with Afghanistan, offering his party’s support for dialogue while emphasizing the need to prevent Afghan territory from being used for militant activities against Pakistan. He stressed the importance of a stable and peaceful Afghanistan for regional security and economic development.
Looking ahead, the Jamaat-e-Islami has announced plans for further protests and political mobilization to pressure the government to address these concerns. The next major event is a planned sit-in beginning February 14th, as part of a larger “Jeeny Do Karachi” march. The government’s response to these demands and the evolving regional situation will be key factors in shaping Pakistan’s economic and foreign policy trajectory in the coming months.
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