Faisalabad businesses keep up criticism of energy policy

Chamber says stakeholders need to be taken on board.

FAISALABAD: “The economic growth rate has dropped to the lowest in the region due to the energy crisis, and the industrial sector – particularly the textile sector – has been worst hit,” Mian Zahid Aslam, president of the Faisalabad Chamber of Commerce and Industry (FCCI), told a delegation from the Pakistan  Institute of Trade and Development here on Tuesday.

“We are potentially rich in natural resources and believed to hold the second largest mines in the world; are the fourth largest producers of cotton, rice and milk; have access to the third largest reserves of coal and other minerals. However, we are severely lacking in planning and governance,” he observed.

He said the recent spate of severe electricity and gas load-shedding has crippled the export-oriented textile industries located in Faisalabad. “Resultantly, the exports target of $16 billion for 2012-13 will not be achieved. The trade deficit will increase, and, above all, Pakistani exporters are losing the trust and confidence of foreign buyers for on-time shipment of their orders, which is evident from the 60% drop in orders received by Pakistani exporters during the recently-held Heimtextil Trade Fair in Germany.”

He complained that the government does not take the business community into confidence while framing economic policies.

He said the electricity tariff has been increased from Rs4.50 to Rs13.00 within the last five years, and said he cannot understand why the government still claims to subsidise the power sector. He also claimed that line losses in Faisalabad are the lowest in the country, while recovery is the best. “Even then Faisalabad’s industries are worst hit by electricity and gas load-shedding,” he complained.

Published in The Express Tribune, January 23^rd, 2013.

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