KARACHI: Lockdown-hurt business community sees positive impact of electricity tariff discounts announced by the government for trade and industry on revving up the economy, their representatives said on Tuesday.
Anjum Nisar, president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said electricity cost will help in overcoming inflation and spurring economic growth.
“FPCCI has long been striving for rational electricity tariffs for industries to help them compete with the regional competitors,” said Nisar. “The struggle has now been fulfilled as the government realised the issue.”
Prime Minister Imran Khan on Tuesday announced reduction in electricity tariffs for industrial sector. From November 1, the additional electricity used by small and medium enterprises up to June 30, 2021, will be sold at 50 percent lower the cost, he said. Large industries will pay reduced electricity costs without any condition of off-peak hours.
Shariq Vohra, president of president Karachi Chamber of Commerce and Industry said overall the industry is very happy with this decision of the government.
“Electricity rates are high in Pakistan and it is for the first time that power rates are being reduced,” Vohra said. “Pakistan’s products have become expensive as compared to the regional and other competitors. The discounted power rates would provide a breather to the export sectors.”
Ikhtiar Baig, former senior vice president of FPCCI, said the government proposed a 50 percent discount on electricity use for small scale industries, and 25 percent discount for medium scale industries.
“It needs to be understood that these discounts are only for additional electricity use i.e. electricity consumed in excess of last year’s average,” Baig said. “Overall it is a positive decision and in the right direction, which would result in increased exports and more employment opportunities.”
Jawed Bilwani, chairman of Pakistan Apparel Forum said the decision will benefit small and medium industries, which are the backbone of the economy.
“Textile sector is not counted among the small and medium sector, but our allied industries will be supported and that would also benefit the textile sector exporters,” Bilwani said.
Bilwani said the cost of electricity in the country is expensive because of previous contracts signed for power generation, which has adverse effects on the economy.
Industrialist Zubair Motiwala said the move is good, “but it will not have a very significant impact”.
“Government has announced discounts on additional electricity use. Industrialists will only be able to consume additional electricity if they expand, which would take time,” said Motiwala. “The government needs to reduce the tariff for existing use of electricity, which would really benefit the exports.”
