Yarn Merchants Appeal Reduction in Electricity Tariff to Save Industry

Yarn Merchants Appeal Reduction in Electricity Tariff to Save Industry

Karachi, August 30, 2023 – The Pakistan Yarn Merchants Association (PYMA) has issued a compelling appeal to the government, calling for a significant reduction in electricity tariffs to safeguard the nation’s struggling industrial sector.

In a statement released on Wednesday, PYMA Chairman Sohail Nisar condemned the recent surges in electricity rates, characterizing them as potentially catastrophic for businesses and industries.

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Nisar directed his plea to Caretaker Prime Minister Anwaar-ul-Haq Kakar and Caretaker Minister for Energy, Power, and Petroleum Muhammad Ali, emphasizing the urgent need for tariff relief to avert the looming threat of business shutdowns.

PYMA’s statement underscores the grave challenges currently facing businesses and industrial enterprises in Pakistan. Nisar stated, “The substantial hikes in electricity rates, compounded by heavy tax burdens, threaten to cripple businesses and industries alike. Small and Medium Enterprises (SMEs) are particularly vulnerable, facing the prospect of devastating layoffs and closures.”

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Highlighting the pivotal role of SMEs in maintaining economic stability, Nisar lamented the lack of support for this sector in Pakistan. He noted that advanced economies worldwide actively promote and nurture SMEs but cautioned that, in Pakistan, these crucial contributors to the national economy have been consistently overlooked. Nisar warned of dire consequences for the country’s economic well-being if SMEs are not shielded from impending destruction.

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In his appeal, Nisar also urged the caretaker government to initiate discussions with the International Monetary Fund (IMF) on more favorable terms. He emphasized the necessity of exploring concrete proposals for easing current conditions and making public interest the foremost consideration in future agreements.

The call by PYMA reflects the growing concerns within Pakistan’s business community regarding the escalating costs of operation, particularly in the context of rising electricity tariffs. As the nation grapples with economic challenges, the fate of its industrial sector hangs in the balance, making immediate intervention in the form of tariff reduction a critical step toward averting an industrial crisis.

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The government’s response to this appeal remains eagerly awaited as stakeholders across various sectors hope for a resolution that will ensure the survival and growth of Pakistan’s industrial base.