Expressing resentment over government’s decision to withdraw electricity subsidies including those meant for lifeline consumers and the agriculture sector, Islamabad Chamber of Commerce & Industry has called upon the government to reverse its decision as it will make life tougher for the consumers and farmers.

Karim Aziz Malik, Vice President, Islamabad Chamber of Commerce & Industry while chairing a meeting of businessmen, said that after power rates hike, the withdrawal of power subsidies to lifeline consumers and the underperforming agriculture would upset the economy.

He said this decision will particularly hit hard the small farmers and will discourage them to use electric motors for tube wells, impacting adversely agriculture productivity.

He said as more money will now be diverted to meet the electricity cost, less would be left with farmers to manage other inputs such as seeds and fertilizer and this situation will further reduce per acre yield creating acute food security problems.

He said with increase in gas and electricity price from January 1, 2010, it has become extremely hard for the industry to look forward at the year ahead positively. The decision is not only unfair, it is very unwise and government should seriously consider reversing it, he demanded.

ICCI Vice President Ahsan Zafar Bakhtawari showed great concern over rising electricity shortage which has reached close to 3300MW, causing difficulties for industry and consumers. He said gas shedding is also making domestic life stagnant and leaving industrial sector unproductive.

He called upon the country’s economic managers to immediately address the twin problem of circular debt and dwindling strategic oil reserves. He said if these issues are not taken care of forthwith, in coming days energy crisis in the country will get further aggravated crippling business and industrial activities and adding more miseries to people.

He said government should curtail all non-development expenditures to keep the budget deficit within reasonable limits so that instead of taking harsh decisions to appease the donors, it could come into a position to provide much needed relief to business community and the general public.