Capital’s traders seek power tariff cut

ICCI says benefits of reduction in fuel prices should be passed on to consumers

ISLAMABAD: People should get the benefit of falling fuel prices in the shape of cuts in the power tariff.

This was stated by Islamabad Chamber of Commerce and Industry (ICCI) President Ahmed Waheed on Friday.

The government should reduce the power tariff in proportion to the reduction in oil prices for the benefit of general consumers apart from traders and industries, he said in a statement.

Waheed said that the government has lowered the prices of petroleum products in the wake of a fall in oil prices in the international market. He added that there were indications that the Oil and Gas Regulatory Authority (OGRA) may propose further cuts in the prices of petroleum products at the end of the month.

Waheed said that Covid-19 pandemic has caused unprecedented losses to the public in the shape of furloughs, layoffs, and pay cuts due to closure of business and industrial activities.

“The pandemic has hit our fragile economy hard which is struggling to survive,” he said.

The best solution to overcome economic challenges, Waheed said, was to give a boost to industrial activities.

Since the electric power constitutes a major aspect of the cost of production and of doing business, he said that lowering tariffs will bring down production costs.

“A proportionate cut in power tariffs will reduce manufacturing costs and make Pakistani exports more competitive in the international market,” he said, adding that it will also help reduce inflation, accelerate the pace of economic activities leading to the early revival of the economy.

The ICCI president further said that the global impact of Covid-19 on businesses was such that most major importers and customers of Pakistani products were demanding discounts.

However, it was not viable for exporters to offer them a discount without a corresponding reduction in production costs.

This situation, he warned, could lead to a cancellation of many export orders. To cope with such challenges, he said that Pakistan should adopt a two-pronged strategy.

Published in The Express Tribune, May 30^th, 2020.