Pakistan Industrial and Traders Associations Front urges govt to drop power hike plan

Lahore, September 12, 2013 (PPI-OT): Pakistan Industrial and Traders Associations Front (PIAF) has urged the government to shun plans to increase power tariff by Rs 10 per unit as any further raise would be detrimental to already crisis-hit industry.

In a statement issued on Thursday, the PIAF Chairman Malik Tahir Javed said that the business community would not be able to continue production processes in the wake of any further hike in electricity tariff when the industry in the neighboring countries is getting electricity at the rate Rs 15 per unit while it would be Rs 21 per unit in Pakistan.

The PIAF Chairman said that Pakistan had already lost a number of international markets and the further increase in power tariff would make the Pakistani goods uncompetitive because power rates in Bangladesh and India are much less than that of Pakistan.

It would be destructive to industrial sector if the power tariff was further increased and businessmen would be forced to close down business. He said that prosperity, economic growth and increase in export volume would become a dream if the prices of utilities were further jacked up.

Malik Tahir Javed said that the business community believes the government has the ability to overcome the ongoing challenges being faced by the trade and industry through good governance but at the same time it wanted of the government to keep the prices of utilities unchanged for at least one year. “This would actually provide breathing space to the crisis hit industry and enable it to get back on its feet.”

The investment scenario, the PIAF Chairman said, was already very bleak and if the government blindly acts upon the dictates of bureaucracy, no foreign or local investor would be putting his money into any new venture in Pakistan.

He said that Pakistan is a land of opportunities and has a huge potential to get investment but wrong policy decisions are forcing the potential investors to go to other regional destinations instead of joining hands with their counterparts in Pakistan.

“Since it is a serious matter therefore calls for consultation from all the stakeholders and it would be wiser on the part of the government if the trade and industry is taken on board before any such announcement regarding the implementation of power tariff hike.”

For more information, Contact:
Pakistan Industrial and Traders Associations Front
110/s Kot Lakhpat Industrial Estate
Lahore, Pakistan
Phone: (92) 42 5123522
Fax: (92) 42 5123522

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