The problem with household electricity consumption

Exorbitant electricity bills are not the main problem, though it is hard to agree when over half the salary is spent paying it. The issue lies in the breakup of consumption — households, for over two decades, have been the main consumers of electricity instead of productive sectors such as industry. In India, for example, residential consumption of energy is 24pc, industrial is 42pc and agriculture accounts for 17pc, according to India Energy Portal, signalling industrialisation. Pakistan’s economic progress has been lopsided. Economic theory dictates that agriculture is the main contributor towards GDP, than as the nation develops, industrialisation contributes towards the economy, and eventually, the service sector becomes the main contributor. However, Pakistan has experienced pre-mature de-industrialisation. While agriculture accounted for about a quarter of GDP in FY23, the services sector had the lion’s share at 54.3pc, and industries contributed 22pc. Worst still, large-scale manufacturing that should be guzzling electricity and manufacturing output that could contribute to growth, increase in employment and exports was at a measly 11pc in FY23.