Chambers resent hike in gas and power tariffs

KARACHI: The prevailing worst power crisis in the country’s history and the highest-ever tariffs for the last several months has brought the industry to the verge of closure, owing to exorbitant cost of doing business which is not viable to run the industry, said the President of the Karachi Chamber of Commerce and Industry, Abdul Majid Haji Muhammad.

He said that although the government has reduced gas tariffs by two per cent due to a decline in international oil prices, the rise in power tariffs will have an adverse impact on the cost of doing business.

President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Sultan Ahmed Chawla, also condemned the government for the increase in power tariff by 7.6 per cent and gas tariff by 12 per cent due to fuel adjustment cost and to overcome the budget deficit.

He said a notification of the arrears for three months from April as tariff adjustment would increase the financial burden on consumers as the consumers. The Islamabad Chamber of Commerce and Industry (ICCI) also strongly resented the 14 paisa per unit increase in power tariffs on account of fuel adjustment cost and the 12 per cent hike in gas tariff from July 1.

ICCI President Zahid Maqbool said that repeated increases in prices of electricity, gas and petroleum products in the recent past has badly eroded Pakistan’s competitiveness due to which the country is losing attraction for investments and this situation would further destabilise the economy.

The Sialkot Chamber of Commerce and Industry (SCCI) also expressed concern that in existing conditions, a further increase in electricity tariff would worsen the situation for the industry. “The ultimate effect would be the closure of industry, which will lead to flight of capital, massive unemployment and decline in government revenues, he added.

Published in The Express Tribune, July 2^nd, 2010.