Power tariff hike can reverse economic revival exercise, says VP FPCCI

LAHORE   –  Raja Muhammad Anwer, vice president of Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has said the government should focus on ease of doing business as the Prime Minister of Pakistan Imran Khan has always highlighted.

“Just like rest of the world, global pandemic hit us hard. Since we had no backups, this economic crunch has been the toughest of all. Pakistan is not in a condition to afford any policy failures on the part of government. Any increment in electricity and gas tariff can send us back to square one. Regular tariff rate revision has adversely affected people’s purchasing power at one hand and on the other, business sector is struggling to lower down the manufacturing cost. Increase in cost of production means losing competitive edge. If our neighbouring country India keeps on providing energy to industrial sector on a cheaper rate then we can never go into international market, we would never be able to beat our competitors in quality and rates,” he said.

“From now onwards, Prime Minister should not only discard all such summaries and policies that suggest tariff hike but should also task his economic team to develop strategic solutions for provision of affordable energy to business sector and public both. This is the kind of economic booster we need from government and if given, getting a lion’s share of exports in the region won’t be a problem for us. Our business community and all trade bodies in Punjab are striving for economic rehabilitation on fast track, and it shall only be possible with government’s support,” he added. The recent approvals from Nepra and Ogra speak against the Prime Minister’s policy of facilitating business community and general public. Tariffs have been revised multiple times during the last two years, provincial government should also take up the issue with federal government and convey the concerns of Punjab’s business community, he said.

“As far as financial challenges in the power sector are concerned, government should keep tab on transmission losses and power pilferage. Decades old distribution network should be rehabilitated, so the general public doesn’t get to suffer from the penalty of losses incurred due to gas and electricity theft and line losses,” he concluded.