KARACHI: The executive representatives of industrial and trade sector of the country, criticising National Electric Power Regulatory Authority (NEPRA), on increasing 48 paisa per unit on an average in electricity tariff have said that such raise would put additional burden of more than Rs 24.34 billion on power consumers.
They said that the National Electric Power Regulatory Authority, on demand of power distribution companies (discos) to meet higher losses, non-recovery of power bills and late payments surcharge has burdened the power consumers.
They asked the National Electric Power Regulatory Authority to immediately reduce electricity and gas tariff per unit rates for all consumers and particularly for industry.
The country’s trade deficit was further stretched by 34 percent during two months of fiscal year 2018, to $6.3 billion against $4.7 billion in same period last year owing to rise in imports and slow exports growth amidst high cost of doing business.
The proposed hike in power tariff was like to drag in the back of power consumers and the much needed textile, leather and other prime export oriented sectors have been burdened with such a hike that would increase cost of doing business, they lamented.
Agha Saiddain, Ghulam Rabbani, Ibrahim Qureshi, Shakeel Ahmad, Sanaullah Khan and Qamar Qureshi, executives of prime export sectors- tanning, textile, business forum, agriculture sector, marble and minerals, economic forum and others segments of trade and business said that business community and every member of the country is deeply concerned over the
The current account deficit swelled during FY17 due to continuous growth in imports by 18 percent amidst decline in exports as growth in textile and leather groups remained subdued, they maintained.
They said that drop in foreign remittances by 3 percent also eroded the external account position.
The export-oriented industry of Punjab and Sindh need special attention as presently these were facing high cost of doing business ad business-friendly initiatives of government could enable industry to grow and increase productivity.
It has always been sad affairs that budget and financial people in concerned ministries had never taken industrial sector on board in making important decisions.
The industry is fast heading towards total closure only because of high cost of gas and electricity.
Imposing a uniform electricity and gas tariff across the country without any discrimination would help the industry and utility prices were hitting the industry as well.
The government’s move is against its manifesto of economic revival and poverty alleviation. Average electricity tariff for industry in region is below 10 cents against 14.4 cents in Pakistan, as power tariff cost in China, India, Bangladesh and Sri Lanka is 8.5 cents, 11.3 cents, 7.3 cents and 9.2 cents, respectively.
The industries are already facing deteriorating law-and-order situation, complexity of taxes and curtailed supply of gas and now power tariff hike would further hit exports and the revenue.
They urged government to give due representation to private sector in Oil and Gas Regulatory Authority to make it an efficient department.
All decisions are being made without keeping in view ground realities and in result export-oriented industry was in hot waters because of high cost of doing business.
Such anti-business acts would hamper growth of manufacturing sector while on the other hand, government machinery always vows to take private sector on board but they do not bother to consult any trade or industrial body while making decisions.
Published in Daily Times, September 23rd 2017.