Many industries closed after 57% power tariff hike

Lahore: Many industrial units were closed after 57% increase is electricity tariff in August. Federal government is again planning to increase power tariff by 30 percent. The decision may result into disaster and many more units will be closed causing serious unemployment in the country. The revenue minded government has focused all its abilities for collection of revenue and no attention is paid for industrial growth and to boost exports.

This was stated by the Chairman Pakistan Tanners Association (Central) Agha Saidain. He further added that present government had failed to introduce export friendly policies which might cause serious setback to the country as value of Rupee had already slipped by more than 8.50 percent in last three months.

“With present policies the balance of payments would be badly disturbed and country may need more borrowings in future years. There is every possibility that we as a country will be caught in serious debt trap and unending vicious circle.”

Agha said it was beyond our understanding that how policy makers could think that industry could survive even after so much increase in electricity bills. He said that most of the industry was either running in loss or operating at a very thin margins.

He said that recent increase in electricity tariff would force industrialists to shut down their operations. “Many people have stopped their industrial activity and have started real estate business. Some of the units have shifted their operations to other countries. The trend is disastrous and may cause serious unemployment in the country.”

He further added that government might set priorities and engage think tanks to suggest prudent policies in the best interest of country at long run. “Most of the present policies are short sighted. The previous government had appointed the Senior Federal Minister for Commerce but the present government has given additional charge to the Minister of State. This shows the difference of vision and mind set.

He said for last few months, TDAP was without its CEO and many matters were pending due his vacant position. He urged government to immediately withdraw decision of increase in electricity tariff to avoid nationwide strike as suggested by many trade bodies and chambers all over the country.

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