FAISALABAD: The Pakistan Textile Exporters Association (PTEA) has strongly criticised the four-month fuel adjustment surcharge levied on consumers explaining that the increase in electricity rates will hit all sectors of the economy and masses.
PTEA Chairman Rana Arif Tauseef condemned the government’s decision to impose the increased tariff on power distribution companies (DISCOs) up by Rs2.21 per unit along with 12% electricity price raise.
He reasoned that tariff implementation would result in massive closures of businesses that are already facing energy shortage and financial crunch due to high mark-ups from banks. Consistency in tax regulations is a key requirement for long-term business growth and these irregular inflationary pressures are affecting investments and upholding economic destabilisation. Furthermore, many businesses have shifted their operations to other stable economies like Bangladesh due to unfavourable business conditions in the country, he declared.
Talking about his relevant industry, Tauseef added that the textile industry has no liquidity available for operational expenses or paying debts and the imposed taxes will drive the industry to unforced closures.
As a matter of fact, competitiveness will become the key to survival when Indian goods flood the Pakistani market due to most favoured nation (MFN) status handed to them. He urged the government to take steps to restrain line losses to control constantly rising energy prices rather than driving up prices by imposing fuel surcharges.
Published in The Express Tribune, May 5th, 2012.
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