Multan chamber urges lower gas tariff
Says hike would multiply problems, burden masses
MCCI says hike would multiply problems, burden masses. PHOTO: REUTERS
MULTAN:
Multan Chamber of Commerce and Industry (MCCI) President Fareed Mughis Sheikh has expressed concern over more than 2% hike in gas tariff for the power sector, which would raise the overall tariff to Rs613 per million British thermal units (mmmbtu), and called upon the government to reconsider the decision.
“This would further push up the cost of doing business in the country and make our exports more uncompetitive in the international market,” he said.
“The government should supply gas to the textile and value-added industry at Rs600 mmbtu and withdraw the Gas Infrastructure Development Cess (GIDC) altogether,” he added.
Lauding the government’s move to reduce gas tariff for fertiliser plants by 76.59 mmbtu, he said it would provide relief to farmers and help improve agriculture productivity. However, he said relief to the fertiliser sector at the cost of the power sector was not a wise move as increase in power tariff for the latter would multiply the already existing problems and, as a result, the additional burden will be passed on to the common man in the form of rising inflation.
“The per unit cost of electricity in Pakistan is reportedly 14 cents while in India, the cost is 9 cents, in China 8.5 cents and in Bangladesh it is 7.3 cents,” noted Sheikh, adding that it clearly showed that power tariffs were the highest in the country due to which exports were struggling.
Pakistan’s total exports during first half of 2015-16 (July-December) witnessed a decline of 14.4% to $10.322 billion against $12.058 billion in the same period of last year.
Published in The Express Tribune, May 15th, 2016.
Multan Chamber of Commerce and Industry (MCCI) President Fareed Mughis Sheikh has expressed concern over more than 2% hike in gas tariff for the power sector, which would raise the overall tariff to Rs613 per million British thermal units (mmmbtu), and called upon the government to reconsider the decision.
“This would further push up the cost of doing business in the country and make our exports more uncompetitive in the international market,” he said.
“The government should supply gas to the textile and value-added industry at Rs600 mmbtu and withdraw the Gas Infrastructure Development Cess (GIDC) altogether,” he added.
Lauding the government’s move to reduce gas tariff for fertiliser plants by 76.59 mmbtu, he said it would provide relief to farmers and help improve agriculture productivity. However, he said relief to the fertiliser sector at the cost of the power sector was not a wise move as increase in power tariff for the latter would multiply the already existing problems and, as a result, the additional burden will be passed on to the common man in the form of rising inflation.
“The per unit cost of electricity in Pakistan is reportedly 14 cents while in India, the cost is 9 cents, in China 8.5 cents and in Bangladesh it is 7.3 cents,” noted Sheikh, adding that it clearly showed that power tariffs were the highest in the country due to which exports were struggling.
Pakistan’s total exports during first half of 2015-16 (July-December) witnessed a decline of 14.4% to $10.322 billion against $12.058 billion in the same period of last year.
Published in The Express Tribune, May 15th, 2016.