The Pakistan Hosiery Manufacturers Association (PHMA) has called upon the government to abolish the outdated peak and off-peak electricity tariff structure, emphasizing that this system no longer serves its original purpose in light of the country’s current surplus in power generation.
PHMA Zonal Chairman Abdul Hameed has warned that the continuation of these dual tariffs is imposing an undue burden on the export-oriented industry and domestic consumers alike, calling it an obstacle to economic growth, competitiveness, and affordability.
In a detailed letter addressed to Prime Minister Shehbaz Sharif, Federal Energy Minister Awais Laghari and Commerce Minister Jam Kamal, the PHMA has drawn attention to the negative impact of the peak-hour electricity surcharge on industrial operations. The association stressed that the policy was originally introduced to curb consumption during peak hours, a time when Pakistan suffered from critical shortages in power generation. However, the present energy scenario has changed significantly. As recently announced by the Ministry of Energy, the country has not only achieved surplus power generation capacity but is also exploring the option to export electricity. Under these changed circumstances, the rationale for maintaining peak and off-peak differentials has completely eroded.
The letter observed that exporters in the hosiery and textile sector, which operate 24/7 to meet strict global deadlines, are struggling to remain competitive due to high electricity charges during peak hours. Abdul Hameed noted that fluctuating electricity tariffs force industries to shift or halt operations during certain hours of the day, disrupting production schedules, reducing efficiency, and increasing overall manufacturing costs. These inefficiencies weaken Pakistan’s position in international markets and threaten to undo years of progress made in export development.
The PHMA Chairman further highlighted that the current tariff system does not only affect exporters but also hits small businesses and middle-income households hard. Small enterprises, which are the backbone of employment and innovation in Pakistan, face higher operating costs that threaten their sustainability. Simultaneously, rising electricity bills are stretching the budgets of middle-class families, already burdened by inflation and high living expenses.