Pakistani traders shutter businesses in protest over energy price hikes

Pakistani shopkeepers close their businesses during strike against inflation in Karachi on September 2, 2023. (AP)

• Shops, markets remained closed in Lahore, Karachi, Peshawar and other cities amid mounting protests that began on Aug 17
• Trader representatives criticize Caretaker Prime Minister Anwaar-ul-Haq Kakar for calling inflated electricity bills a ‘non-issue’

KARACHI: Pakistani shopkeepers shuttered their businesses in multiple cities on Saturday in response to calls from trader associations and the Jamaat-e-Islami (JI) religious party to protest exorbitant hikes in electricity and petroleum prices, which have fueled inflation in the South Asian country.
Shops and markets remained closed in Lahore, Karachi, Peshawar and other cities amid mounting protests that began following a hike in petroleum prices in Karachi on August 17, but spread nationwide due to an increase in power tariff. On Friday, Pakistan once again hiked petrol and diesel prices, breaching the Rs300 mark for the first time in its history and leading to widespread anger among the masses.
The developments come months after Islamabad signed a badly-needed $3 billion deal with the International Monetary Fund (IMF) to avert a default due to decades of mismanagement and instability. However, the global lender demanded that popular subsidies cushioning living costs be slashed and imposition of Rs50 petroleum levy on every liter.
Other conditions included generating additional revenues, raising energy prices and adopting a market-based currency exchange rate, all of which have fueled inflation in the South Asian country that persisted at 27.4 percent in August. It peaked to an all-time high of 38 percent in May.
But Caretaker Prime Minister Anwaar-ul-Haq Kakar chose to dismiss the public concerns in a meeting with journalists on Friday, saying the matter of energy price hikes was being used by political parties for electioneering. His statement, widely reported by the local media, met with strong criticism from the masses.
“The entire country is closed on our call, sending a strong message to Caretaker Prime Minister Anwaar-ul-Haq Kakar, who called inflated electricity bills a non-issue,” Kashif Chaudhry, president of a central body representing traders, told Arab News over the phone from Islamabad.
“All big and small cities have overwhelmingly endorsed our demand to reject the electricity hike,” he said, urging the government to eliminate 13 different taxes on electricity bills.
Chaudhry denied the allegation that trader associations and political activists had forced shopkeepers in Karachi and Peshawar to close their businesses, noting that businesses remained suspended in Islamabad, and Punjab and Balochistan provinces as well.
“Attempting to force over 10 million shops to close is simply unfeasible,” he added.
In Peshawar, people carrying JI party flags were observed encouraging traders to close shops, but the party maintained that shopkeepers had voluntarily shut their businesses to protest the government’s policies.
“Shops are closed in every small and large city in the province,” Abdul Wasey, the JI provincial general secretary, told Arab News. “You don’t need to push the oppressed masses to protest. This is the most significant and successful strike because people have no choice but to protest the price hike, which has compelled them to struggle to afford a two-time meal.”
Pakistan’s commercial hub of Karachi witnessed market closures for the second consecutive day on Saturday, while clashes erupted between people protesting prices hikes and the police as the latter attempted to clear the national highway in the Quaidabad area.
Zahid Askari, a JI spokesperson, maintained the protesters remained peaceful and did not engage in any violence. “This is the most peaceful protest,” Askari told Arab News.
Atiq Mir, president of the Karachi Traders Alliance, said markets in the city largely remained closed, adding the “exorbitant electricity bills have made today’s strike a success.”
In a statement, Justice (retired) Maqbool Baqar, caretaker chief minister of Sindh province which Karachi is the provincial capital of, said the interim government was aware of the challenges faced by the public. He, however, emphasized that protests should not cause inconvenience to others.
“We acknowledge that people are distressed by the rising prices, a sentiment we feel. Both the federal and provincial governments are actively working together to implement measures that will alleviate the burden on the public,” he said.
“While we respect the right to protest, we urge everyone to ensure that their demonstrations remain peaceful.”
Baqar directed authorities to take all necessary actions to keep the protests peaceful.