MCCI lambasts hike in electricity tariff

Warns of mass closure of industrial units due to high cost of doing business

MULTAN: Rejecting the hike in electricity tariff by the National Electric Power Regulatory Authority (Nepra) on the insistence of power distribution companies, the business community of southern Punjab asked authorities on Sunday to reduce electricity and gas tariff particularly for Punjab-based industries.

Multan Chamber of Commerce & Industry (MCCI) President Khawaja Jalaluddin Roomi criticised Nepra for increasing average electricity tariff by 48 paisa per unit and resultantly, burdening consumers with an additional Rs24.32 billion in payments.



Highlighting the country’s growing trade deficit, Roomi expressed surprise and dismay at the timing of the proposed hike in power tariff, which he said will further reduce the competitiveness of domestic manufacturers.

Quoting latest figures, he said that the current account deficit swelled during FY17 due to continuous growth in imports of 18% amidst decline in exports as growth in textile sector remains muted.

He said that export-oriented industries of Punjab need special attention and incentives since it is already facing high costs of doing business. He said that business-friendly initiatives from the government could enable industrial growth and increase industrial productivity, adding that policymakers should collaborate with the private sector in the decision-making process.



The MCCI president said that the industry is fast heading towards the mass closure of manufacturing units due to high costs of gas and electricity.

The MCCI meeting asked the government to impose a uniform electricity and gas tariff across the country; as discrimination in utility prices is indiscriminately hurting Punjab’s industry.

Published in The Express Tribune, September 27^th, 2017.

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