LAHOERE: The Lahore Chamber of Commerce and Industry on Friday expressed deep concern over the announced plan to increase the electricity tariff.
In a statement, LCCI President Mian Nauman Kabir, Senior Vice President Mian Rehman Aziz Chan and Vice President Haris Ateeq said that on the one hand, the government plans to increase the electricity tariff, which will deal a blow to the industrial sector in general and the export oriented industry in particular while on the other side, the government has taxed solar power equipment to discourage the cheap power source.
“Most of the electricity in Pakistan is generated by oil-fired electricity generators, which has kept energy tariffs volatile to the point of rapidly crushing economic activities,” LCCI officials said. .
They said raising electricity tariffs is an exercise in futility and will do the government no favors unless and until it develops a plan to eliminate inefficiencies in the electricity sector.
LCCI board members said that in addition to controlling line losses and electricity theft, the government will need to come up with a plan to convert petroleum-based electricity generators to alternative sources.
They feared that the government’s plan to increase the electricity tariff would increase incidents of electricity theft, which is already one of the biggest challenges facing the electricity sector.
How will the industry remain competitive at such a high electricity tariff, which is one of the basic industrial raw materials,” they questioned and said that Pakistani goods face challenges in maintaining their existence on the international market while a further increase in the electricity tariff make things more difficult.
Mian Nauman Kabir, Mian Rehman Aziz Chan and Haris Ateeq urged the government to avoid the electricity tariff hike plan and encourage alternative energy resources for the broader benefit of the industrial sector and the economy.
Copyright Business Recorder, 2022
