The Pakistan Industrial and Traders Association Front (PIAF) has appreciated the government for taking structural reforms especially in power sector to ensure further relief for the consumers and overall development of the country.
The PIAF Chairman Fahimur Rehman Saigol, Senior Vice chairman Nasrullah Mughal and Vice chairman Tahirm Manzoor Chaudhry in a joint statement said this reduction will help industrialists produce cheaper and more competitive products. They noted that the common people had to suffer a lot in the past due to high inflation rate and electricity bills. However, they asked the government to take further steps to provide maximum relief to them.
Highlighting the structural reforms to be taken in power sector, the PIAF Chairman said the government should ensure halting power theft which was around Rs600 billion per year. Similarly, he said by establishing open market, the electricity tariffs will be further decreased.
He said there was no option but to privatise or commercialise Power Distribution Companies (DISCOs) to reduce the burden of line losses and power theft on the national exchequer.
It is to be noted that Prime Minister had announced a significant reduction of up to Rs 7.69 per unit in the electricity prices for the consumers, pledging to provide further relief in near future through structural reforms in the power sector. In June 2024, the per unit price for industrial sector was Rs 58.5 which was first reduced by Rs 10.3 and further by Rs 7.69,” he added. The PM has directed the team concerned to work diligently to implement reforms in the sector as soon as possible,” he added. Appreciating the task force formed to finalise power reforms, he said the force worked really hard and through their innovative thoughts, they brought different options and managed to convince the IMF to reduce the power tariffs.
The govt did not pass on the low international petroleum prices and retained the prices to ensure that the government will reduce the power tariffs to which IMF agreed in principle, he added. He said the trust with the IMF that was breached in 2020, was now being restored.
Similarly, he said the government successfully negotiated with the Independent Power Producers (IPPs), and praised the government team, led by Awais Leghari for their commendable efforts. “After negotiation with the IPPs, the govt managed to save Rs 3,696 billion that were to be paid to the IPPs.
Likewise, he added that the government was also facing an immense challenge of circular debts of Rs 2,393 billion.