Large-scale manufacturing: LSM needs cheap energy for growth, says LCCI

Chamber asks govt to tap all affordable energy sources

LAHORE: Businessmen of the country, while underlining the importance of cheap energy, have stressed that low-cost power is a must for pushing growth momentum of the large-scale manufacturing sector.

“The government should explore all avenues to ensure affordable energy supply, particularly in the wake of China-Pakistan Economic Corridor that will expedite industrialisation,” a statement quoted Lahore Chamber of Commerce and Industry (LCCI) President Sheikh Muhammad Arshad and Vice President Nasir Saeed as saying on Saturday.

A sudden increase in electricity, gas and petroleum prices in the past had shaken future planning of the industrial sector, they said, adding that the trade and industry needed more government support to bring the input cost down.

“Crude oil price stands at its lowest but the government has not passed its full benefit on to trade, industry and agriculture,” Arshad pointed out.

He suggested that the government should reduce petroleum prices by at least Rs20 per litre considering the sharply lower crude prices in the international market.

The price of crude oil had come down to $37 per barrel but Arshad said policy-makers were reluctant to provide the entire benefit to the trade, industry and people. Calling it sheer injustice, he pointed out that traders and people were still suffering and paying a heavy cost of electricity and transport. “Only because of the high cost of doing business in Pakistan, a large number of industrial units have lost their due place in the global market,” he said.



“It is not the industrial sector alone but the agriculture sector is also suffering badly because of high prices of petroleum products.” The LCCI president termed the agriculture sector an engine of growth and said lower petroleum prices would bring the input cost down as high-speed diesel was being used in tractors, tube wells, harvesters, thrashers and other agriculture machinery.

Published in The Express Tribune, December 27^th, 2015.

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