KARACHI: Mian Zahid Hussain, Chairman of FPCCI Advisory Board and President of the Pakistan Businessmen and Intellectuals Forum, has expressed deep concern over the recent increase in basic electricity tariffs and fixed charges, labeling them as unbearable for both the public and businesses.
Hussain highlighted that the continuous rise in electricity prices is threatening livelihoods and undermining the rights of traders and industrialists. He questioned the government’s strategy for tax collection amidst a struggling economy. He warned that current policies would hinder business expansion, investment, and efforts to reduce unemployment and inflation, ultimately leading to missed tax targets.
Criticizing the government’s approach, he noted the lack of consultation with business stakeholders before finalizing the budget, calling it a recipe for economic disaster. He pointed out ongoing strikes by petroleum dealers and protests from sectors including oil marketing, alternative medicine, exporters, gems and jewelry, salaried employees, the lubricant industry, construction, and real estate.
Hussain emphasized that the public is grappling with severe inflation, making it increasingly difficult to pay utility bills. He condemned the selective tax collection, which spares defaulters, evaders, and electricity thieves, while burdening honest taxpayers.
He detailed the tariff hike, noting an increase of Rs 5.72 per unit, setting the basic tariff for domestic consumers at Rs 48.84 per unit, which could rise to Rs 65 per unit with adjustments and taxes. This hike will place an additional burden of approximately Rs 600 billion on consumers.
Fixed charges have also seen significant hikes: a 150% increase for commercial customers, raising charges from Rs 500 to Rs 1250; an increase for industrial customers from Rs 440 to Rs 1250; and a 100% rise for agricultural tubewell consumers, from Rs 200 to Rs 400.
Hussain urged the government to reconsider these increases and engage with business and industrial leaders to develop more sustainable economic policies.
