KARACHI: Shaheen Ilyas Sarwana and Gulzar Firoz Vice Presidents Federation of Pakistan Chambers of Commerce & Industry FPCCI have strongly expressed their concern on the increase in power tariff and termed it as anti-industrialization for the economy which is already confronted with many challenges.
In a statement, the Vice Presidents FPCCI said that the industry was already under severe crises due to deteriorating
security, increased taxes and lack of gas and electricity, hence, the increase in tariff would result in a surge in prices of various commodities and further lower GDP growth, government revenue and exports.
Moreover this would lead to an increase inflation and unemployment, which is not affordable, they added. They further said that the continuous rising of power tariff was unfavourable towards the sustainability of the economy, as it severely affected the industrial sector growth which was already lower since many years.
They said that consistency in power tariff was the key requirement for making long term business expansion plans. Frequent increase in electricity tariff was affecting investment and also destabilizing the economy. They further stated that power tariff is now increased to 75%, which was already high in Pakistan compared to other regional countries, which made Pakistan uncompetitive in international market.
Vice Presidents FPCCI said that country was facing a huge energy deficit since last few years and massive load shedding had crippled the industrial activities as thousands of industrial units had closed down or relocated while millions of industrial workers had lost their jobs and the government, instead of initiating any mega power projects, increased the power tariff.
They urged the government to focus on eliminating theft in the transmission and distribution, which was currently more than 20% of net energy generation and exploration of other energy resources instead of importing oil for generation of energy.