YET another accident caused by a methane gas explosion has been reported from the dangerous coal mines of Balochistan. Eight miners suffered serious burns when an explosion occurred in a private coal mine in the Dukki area. A portion of the mine collapsed, trapping the workers before they were rescued and taken to the district hospital. The injured miners were incredibly lucky to have escaped with their lives. Only last month, at least 13 coal miners were burnt to death under similar circumstances when trapped methane gas exploded inside coal mines in Harnai district and the Marwar area in Bolan district. Meanwhile, in February last year, four workers were killed in a landslide in the Dukki mines. The frequency of deadly accidents in the country’s coal mines can be gauged by the fact that last year there were at least 72 deadly incidents reported from Balochistan that claimed the lives of 100 colliers.
It is deeply unfortunate that despite the heavy casualty rate in the country’s coal-mining sector, the deaths of poor workers seldom makes headlines. The colliers venture hundreds of feet deep inside the mines without any safety gear except for helmets and torches. They do not receive any prior training to overcome the extreme hazards of their occupation. It is only when an accident occurs that the government is stirred into action — only to come up with the lame excuse that it doesn’t have enough resources to ensure the regular inspection of the mines or provide proper safety equipment. This perilous sector is responsible for many deaths that could have been prevented. Safety precautions including protective gadgets can save lives. However, the apathy demonstrated by both provincial and national authorities in building the capacities of the mining department, hiring more mines inspectors and penalising mine owners who do not ensure the safety of their employees is beyond comprehension. Prompt measures are needed to ensure that safety procedures are followed in the coal mines to prevent further injuries and loss of life.
Capping power debt
THE suggested revision in the Circular Debt Management Plan, which aims to cap the flow or addition of new debt to the power sector’s existing debt stock of over Rs2.3tr by June 2023, seeks to avoid or at least delay an increase in electricity prices that has been agreed with the IMF for resumption of the Fund’s $6bn programme. The proposed hike of Rs4.50 per unit in the price will raise average power tariffs from Rs16.50 to Rs21. Since the amended Nepra Act has stripped the government of its powers to stop or delay notification passing on price increases to consumers, there is a new strategy in the revised plan to keep electricity rates at their current level, at least for now, to dodge the political fallout of such a massive spike. Yet, it will not be possible for it to entirely avoid the tariff increase in spite of the planned rationalisation of sales tax on electricity sales and the fuel component of generation, as well as enhancement in the amount of consumer subsidy from the next fiscal year.
The power sector debt management strategy has many planks: the negotiated purchase of old, inefficient private generation plants, the closure of rundown public-sector generation, fresh capital investments in the distribution infrastructure etc. Besides, according to the sketchy details made public, the government intends to renegotiate the contracts with sponsors of the generation plants built or being built by Chinese investors for restructuring their project debt tenures over a longer period than the existing 10 years. It has already renegotiated deals with sponsors of IPPs set up under various pre-CPEC power policies since 1990 for reduction in their tariffs. The return on equity for the new public power companies has also been slashed. Once implemented, the proposed plan is expected to significantly cut system losses, improve bill recoveries and reduce the burden of capacity payments, ultimately capping the debt flow in addition to minimising the need for hiking electricity tariffs. The government estimates the existing circular debt stock to double to Rs4.6tr in two years in case no action is taken. It is claimed that the renegotiated power purchasing contracts with the non-Chinese IPPs have already saved consumers Rs1 per unit in tariffs.
Prima facie, the strategy, which the government should share with the people for the sake of transparency and debate, seems alright on paper. But it has “many variables and moving parts” that need to be implemented concurrently in order to deliver the desired results. Does the government have the ability to execute these measures considering it has already defaulted on its commitment to paying its first instalment of unpaid bills to the IPPs under revised deals with them because of NAB’s uncalled for intervention? Reneging on its promises will further dent the government’s credibility — trust is a prerequisite for seamlessly implementing the plan.
Istanbul postponement
WHILE the postponement of the Istanbul peace talks on Afghanistan, which were scheduled to be held later this week, does come as a dampener, it does not mean that the peace process is dead. In fact, global and regional powers will now have to step up their efforts to ensure that the Afghan government and the insurgents continue the dialogue process and achieve a consensus acceptable to all in Afghanistan. At this point, the Afghan Taliban’s lack of participation in the Istanbul parleys is being cited as the major reason for the event’s postponement, while the Turkish foreign minister has said the talks had been put off till “after Ramazan”. Apparently, the Taliban are posturing as the Biden administration has pushed back the withdrawal date of foreign troops from May 1 to Sept 11; the earlier date was agreed upon by the Taliban and the Trump administration after the two signed the Doha peace agreement in 2020. The Taliban have adopted the maximalist position that they will not participate in any peace negotiations until foreign forces leave Afghanistan, though Pakistan has urged the militia to stay engaged.
At this critical juncture, the Taliban can play hardball and avoid the negotiating table, rendering years of painstaking diplomatic efforts meaningless as Afghanistan plunges back into anarchy. However, the alternative is for the armed group to keep channels open and reach a power-sharing agreement with the Afghan government and other stakeholders in the country. Perhaps Pakistan and other Muslim states — the Arabs, Turkey, Iran — can ramp up diplomatic efforts to ensure that the Taliban do not walk away from the peace process. It should be clear that achieving peace will require compromises from all Afghan power players, and the ‘all or nothing’ approach will only pile more misery upon the hapless Afghan people. With a mix of carrots and sticks, there is a fair chance of convincing the Taliban. Moreover, foreign forces must also honour their commitments and withdraw as per the new deadline, while the government in Kabul must show that it is ready to defend the whole country without foreign support. The brief window of opportunity for achieving peace in Afghanistan is closing, and it is not known when — or if — the next one will open. Therefore, an increased diplomatic push by foreign powers and internal efforts by the Afghans themselves are required to grab the opportunity before it slips away yet again.
