What does the energy summit offer?

Hoping for light at the end of the tunnel, Prime Minister Gilani announced his governments energy austerity measures at a brightly lit press conference on Thursday.
But what if the light at the end of the tunnel is actually that of an oncoming train? Should one prepare for a head-on? Contrary to what the government may claim, the answer to that may well be a resounding yes.
Soon after the plans were tabled, traders and bazaar associations rejected the proposal to close shops early; others placed a condition that if they must close their outlets by 8 p.m. then they must be ensured continuous energy throughout the day.
In any case, if the government uses force, as planned, to implement its law, a street clash may be on cards.
The big test for politicians, therefore, is how to sell the plan in their respective constituencies. Even if and when they decide to reach out to the public, convincing the masses would be a tough job, considering their tarnished image following the reports of alleged scams in RPPs and LPG deals among others.
But the economy would likely suffer from more number of idle days any way.
Since banks provide the necessary flow to business and commercial activities, both economic output and tax revenue on transactions can shrink with the closure of banks on Saturdays, notwithstanding the compliance or non-compliance of traders and other business associations.
However, marginal productivity can potentially rise, at least theoretically, because a proper weekend, as is the case in most countries, tends to rejuvenate the mind and body.
The two-day weekend can also lower fuel consumption. In case the transporters stop their wheels, fuel consumption can ease, as the sector consumes nearly half of the total pie.
But if transporters continue working on Saturdays, then of course, fuel consumption might marginally increase instead. Relatively longer weekends can spur retail fuel consumption, if young and old go about for a long drive trying to have a good time.
This may also mean good times for the entertainment industry, where food business tops the list.
As far as electricity is concerned, the so-called four-pronged measures will save 500 MW which in simple terms means only an hour less of load shedding time, unless of course the industrial sector stays shut on Saturdays as well. If that happens, so will the economy.
Meanwhile, the household sector, which consumes 45 percent of the electricity pie, will be sitting idle in front of the idiot box, at the expense of lower economic output.
The bottomline is that these conservational plans are much too controversial with little to offer, except for the Rs116 billion imbursement to plug the circular debt temporarily.
How will that be paid off is another issue, but rest assured it will take away huge swaths of credit from already squeezed pie, leaving other private borrowers on the sidelines.
If the government had shown a real sense of urgency two years ago, it perhaps wouldn have had the need to call an urgent summit last week - and that too only after public furore demanded a collar-grabbing immediacy.