FPCCI urges fair access to winter power relief

Acting president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Qurrat Ul Ain, has called for the government's recently announced winter electricity relief package to include small and medium enterprises (SMEs) without imposing the requirement of 100,000 units of consumption during the same period last year.

She suggested that the Rs26/kWh tariff should apply to all incremental units consumed beyond that threshold.

She noted that SMEs and newer industries, in particular, cannot meet this consumption condition and will thus remain at a disadvantage compared to larger industrial units. This limitation could prevent the government from realising the full benefits of its winter package, potentially restricting increases in industrial production and exports due to barriers that hinder the intended economic boost.

She added that 100 textile units have already closed in Faisalabad due to the rising cost of doing business and the lack of ease-of-doing-business measures in Pakistan. High electricity tariffs and the 15% key policy rate are the two major factors inflating business costs compared to regional competitors.

The FPCCI acting president highlighted that core inflation was at 7.2% in October 2024, while the key policy rate remains at 15%, resulting in a premium of 780 basis points.

Qurrat Ul Ain reiterated FPCCI's demand for a single-digit interest rate, urging that this change be implemented in one decision at the next meeting of the State Bank of Pakistan's Monetary Policy Committee (MPC).