Electricity tariff: Industrial associations welcome reduction

Assure government of revival in exports, utilisation of idle capacity

KARACHI: Reduction of Rs3 per unit in electricity prices for industries would go a long way towards the revival of the textile industry, said All Pakistan Textile Mills Association (Aptma), one of the most influential business lobbies in the country, in a press statement.

The crisis-ridden textile industry of Pakistan, which had earlier been slapped with Rs3.63 per unit surcharges, welcomes the announcement, it added.



Aptma Chairman Tariq Saud appreciated efforts of Special Assistant to the Prime Minister on Revenue Haroon Akhtar Khan and Finance Minister Ishaq Dar for supporting the cause of the industry and stemming the fast falling exports on account of non-competitive energy cost for the industry. Saud assured the government of industry’s full support and efforts in bolstering the declining exports and the revival of the currently closed capacities at the earliest.

Korangi Association of Trade and Industry (KATI) President Zahid Saeed also praised the PM’s announcement. “The prime minister’s roadmap for security and energy crisis is strong enough to resolve the problems of the manufacturing sector of the country,” he said, adding that the government had initiated many projects in the energy sector to help overcome the prevailing crisis.

In August 2013, the PML-N government increased an unprecedented 74% in electricity tariff for industrial, commercial and bulk consumers of all distribution companies to increase revenue by Rs169 billion.



The jump in industrial tariffs was according to different slabs - with the lowest Rs7.46 per unit off-peak hours to highest Rs18.81per unit on-peak hours.

Predominantly, textile industries get electricity through independent 11KV feeders with nearly no line losses.

The new rates will be applicable from January 1, 2016.

Published in The Express Tribune, December 30^th, 2015.

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