The massive power breakdown that blacked out half of Karachi on Friday night has exposed the tottering state of the KESC and its inept management. It happened after a major power generating plant broke down in the evening and lasted well past midnight.
Notwithstanding the fact that evenings in Karachi have become comparatively cool these days, millions of residents suffered, the prolonged breakdown badly affecting their evening routines and disrupting work in the city's commercial centres, hospitals and so on.
Not only that, the losses to the city's industrial and commercial establishments must have been very high. The fact is that electricity breakdowns are nothing new in Karachi which has often to face the problem of frequent and prolonged power failure.
Over the years, the KESC has become a household name for its gross inefficiencies at various levels of its operations, including customer service. Besides, recently it been mired in a controversy for asking its subscribers to change their meters, saying that the older ones were artificially slower.
Most subscribers, however, do not buy this story and say that the move is designed by the KESC to overcharge them. To make matters worse, the utility has one of the highest rates of transmission and distribution losses in the world and not much has changed on that account since its top-level management was handed over to the army.
Friday's breakdown is an indictment of the incompetence of the KESC's methods of dealing with a crisis situation. If the management of an essential service in any other country performed as poorly as this one, it would have been sacked a long time ago. But here failures and breakdowns are easily explained away, excuses given and promises - only to be broken.
The KESC management has been saying for a number of years that the distribution network and infrastructure need a thorough overhaul but it has little to show for its concern in terms of efforts to obtain or generate the funds needed for such a revamp.
Unless that is done, unless the KESC goes after those who steal electricity and takes action against its employees who facilitate thefts, unless it becomes an efficient organization, the city and its economic and commercial establishments will continue to be held hostage to the whims and caprices of the KESC.
Raising more revenue
Asking the Central Board of Revenue to raise additional revenue of Rs 10 billion during the current fiscal year and not introduce any new taxes to do this puts the CBR to a hard test.
Following the shortfall from the collection of the petroleum development levy (PDL), it is expected that revenue collection will suffer a shortfall if remedial steps are not taken.
One hopes the CBR makes up this shortfall by minimizing tax evasion. The tax collection target for 2004-05 is Rs580 billion which will now go up by Rs 10 billion. PDL collections will be much lower than the targeted Rs47.5 billion set for the year.
As a first step, the CBR must be vigilant to the problem of under-reporting of earnings by tax payers. Strict compliance by the tax authorities can ensure that the tendency is kept to the minimum.
The other problem is outright evasion. In this, the government needs to take steps to widen the tax base. The CBR should be given the responsibility of raising the number of income tax payers in the country from 1.7 million to three million, within a reasonable time.
However, there are gaps and loopholes in the tax system that need to be filled. As a first step, the government needs to introduce legislation to make the CBR autonomous.
Its management should have the power to hire, fire or transfer its own staff and design its own policies. It is only then that the gaps and loopholes in the tax system can be plugged. What is needed is an integrated approach to making the CBR more alert, efficient and powerful.