PESHAWAR: Pinched with already higher prices triggered by rising energy costs, people belonging to lower income groups, business community and political leaders of the Frontier province see further devastation to the already shattered economy of this province in case the government continues with privatization of the public utilities.

“We can’t feed mobile phones to our children, so if the government’s privatization policy has spread the use of cell-phones it is of no benefit to poor people,” said Juma Khan, who earns about Rs3,000 a month. He works 10 hours a day in a private firm. He apprehended that the government’s bids to privatize power distribution companies would add to economic woes in absence of price controlling mechanism.

Similar views were expressed by people belonging to middle and upper income groups, who felt that the privatization of public utilities may also compromise the country’s strategic interests.

“Power sector’s privatization needs to be handled very carefully as in the absence of a healthy competition the management of the privatized companies would enjoy free sailing that may lead to establishment of monopoly,” said Haji Mohammed Adeel, a leading businessman and vice-president of the Awami National Party.

He said that the local investors could not compete with bidders from the Middle East, Europe and the US. Thus, one after another important public sector utilities would be taken over by foreign investors.

“If this happens, it would amount to mortgaging the country’s strategic interest to the foreign powers,” added Haji Adeel.

Zia-ul-Haq Sarhadi, a leading trader and a leader of Sarhad Chamber of Commerce and Industry (SCCI), expressed the similar views. He, however, appreciated the privatization in the telecom sector that had encouraged competition resulting in easy availability of connections and cheaper call rates to the benefit of the consumers.

He felt that the sell-off of power companies may not bring any relief to the common man because of the absence of competition. “Power tariff may go further up under the private management,” he asserted.

Mr Juma Khan said that prices of petroleum products started climbing since the Oil Companies Advisory Committee (OCAC) had been delegated the powers to determine the prices on fortnightly basis.

Haji Adeel said that the private sector management would pass on the burden of line losses and power pilferage to the consumers to remain in black.

He said that the privatization of power utilities would be harmful for the NWFP as it was heavily dependent on the financial resources it generated every year on account of net hydel profit.

Water and Power Development Authority (Wapda) pays substantial amount every year to the NWFP against its share out of profit accrued from sales proceeds of hydel power generated by the country’s biggest hydel power generation unit at Tarbela and five other units working in different parts of the province.

The remote districts in the province, with a population of more than 400,000 people, are relying on the electricity generated by more than 250 small hydel power units run by private operators as the government has no power distribution networks in these areas.

However, for many the government’s move to privatize the Peshawar Electric Supply Company (Pesco), a subsidiary of Wapda, poses a big question mark.

“The management of Pesco and civil administration of different areas have been experiencing difficulties because of public protests against power outages. How would the government handle the situation after the privatization of the Pesco”, said a senior official of the provincial government.

Haji Adeel, however, believes that instead of disposing of the utilities the government should improve their performance by appointing professionals to run these entities.