KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed concerns over government decision to increase electricity charges.
FPCCI President Mian Anjum Nisar in a statement on Saturday urged the government to continue power tariff of 7.5 Cent/Kwh for Zero-rated sector as announced in the January 2019.
He said that upward shift in electricity charges will hurt exports target of US $ 26 billion set under Annual Plan 2019-2020.
The FPCCI president informed that few days back a delegation of FPCCI under him was met with the Prime Minister Imran Khan and he informed the Prime Minister about challenges and difficulties being faced by Pakistan industry.
He informed the Prime Minister that electricity charges in Bangladesh and India are nearly 7-9 Cent/Kwh while in China which is our major trading partner the electricity charges are less than 9 Cent/Kwh.
Similarly, high mark-up rate in Pakistan is also creating hurdles to industrial growth.
Interest rates in Pakistan are 13.25 percent while in India is 5.15 percent, China 4.2 percent and in Bangladesh the rate of interest is 6 percent.
President FPCCI further stated that if the government allow upward shift in electricity rate which is expected to be nearly 70 percent increase in existing 7.5 Cent/Kwh and from January 2019, the exports will be discouraged and our buyer will lose confidence in Pakistani suppliers due delay in exports orders.
He urged the government continuation and consistency in long term policies once it is announced. Changes and revisions hurt the industrialist’s plan of production and purchases and booking of orders which is made according to the policy announcement.
He emphasized the government to review its decision of changes in electricity tariff and continue the rates as announced to support industry.