RECENT POWER TARRIF HIKE TO SHAKE BADLY THE INDUSTRIES CHAIRMAN, S.I.T.E. ASSOCIATION OF INDUSTRY

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enewspaper.com.pk
enewspaper.com.pk
enewspaper.com.pk

Karachi: (PR): Chairman, S.I.T.E. Association of Industry, Dr. Arshad A. Vohra, has taken a strong exception to the recent increase in electricity tariff for industrial, commercial & bulk consumers of all distribution companies including Karachi Electric Supply Company Limited (KESCL) with immediate effect. He said that the power tariff hike would increase the cost of doing business and render the country’s exports uncompetitive in world markets as a result of this the countries with less production cost would capture global markets presently dominated by Pakistani exporters. This increase will mostly benefit textile industries of other countries at the cost of Pakistani industry as their products would become more attractive in the world market.

He further said that the government should have taken all the stake holders on board and understand the difficulties of increase in electricity rates before making any drastic changes in the electricity tariff, the one sided decision will result in massive loss to trade & industry and country’s exports .

The government is not in a position to provide uninterrupted power & gas supply to the Industry due to which industry is faced with higher cost on operating below the capacity. The decision of hefty increase in power tariff is bound to damage the manufacturing sector and exports, he lamented.

He said that many fear massive closure of small scale units unless they find a way to transfer the additional burden on to their buyers. The power breakouts in a day effects production & sale. Now this increase in power prices will crush the small size manufacturers. He further said that while agree for the increase in the electricity prices, however argues that this should have been done only after putting in place effective measures to stop power theft, improve governance of power companies and cutting huge transmission and distribution losses.

Chairman, S.I.T.E. Association of Industry urged to President Syed Mamnoon Hussain, Prime Minister Mian Muhammad Nawaz Sharif, Federal Minister for Water & Power, Khawaja Muhammad Asif, Governor Sindh, Dr. Ishrat-ul-Ebad Khan, Chief Minister Sindh, Syed Qaim Ali Shah to intervene in the matter to reconsider the decision and review the tarrif of electricity to control fast galloping inflation and rapidly going up cost of doing business to save the industrial sector from total collapse.