Flour millers have rejected a 300% increase in the (Maximum Demand Indicator) MDI charges for all domestic industries in the budget for the fiscal year 2024-25 and termed it as disastrous for the national industry. The Punjab government has increased the MDI charges from Rs200,000 to Rs800,000.
The prices of flour and sugar are expected to increase by Rs12 to Rs15 per kilogram. New industries will shut down, and old industries will have their electricity connections cut off.
When contacted, Raza Ahmad Shah, a leader of the Pakistan Flour Mills Association Rawalpindi Division, said that the Prime Minister's announcement of Rs10 per unit reduction in electricity prices for industries and then the increase in fixed charges of millions of rupees is incomprehensible.
“It seems that our government cannot implement any of its decisions. Another tsunami of unemployment and inflation will come from this decision of the government,” Shah said, adding apart from the used unit of a factory, the monthly MDI fixed charges were Rs200,000, but now those charges will increase to Rs800,000 per month, which will increase the production cost.
Shah further said that the decision would increase the price of flour by Rs10 to Rs15 per kg, adding not only flour but everything including rice, pulses, medicine and food would become expensive, the industry and imports would be discouraged, import bill will increase and the country’s exchange reserves would suffer.
The business community believed that the govt should not take away the right to live from people instead of kneeling before the IMF, he said.
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