Electricity tariff in Pakistan is already one of the highest in the region due to which cost of doing business is far higher in the country as compared to our competitors and any further hike in power tariff will badly affect the competitiveness of our exportable products. Therefore, government should refrain from considering any increase in power tariff.

This was said by Zahid Maqbool, President, Islamabad Chamber of Commerce & Industry while reacting to IMF demand on Pakistan to further increase electricity rate by 1.6 percent. He said if implemented, this decision would result in further collapse of industry and give rise to unemployment due to closure of industrial units.

He said government should look for long-term power solutions; otherwise Pakistan will have to confront with serious problems when there will be no end to such short-term measures which mostly hamper the economic growth of the country.

Zahid Maqbool said that construction of small and medium dams in the country, accelerating the pace of “in the pipeline” power projects to bring them online within shortest possible time, taking urgent measures to execute Iran-Pakistan gas pipeline venture and providing more incentives to attract investment in power sector are the needed measures that will enable Pakistan to become self-sufficient in power sector.

He said government should take business leaders on board and get their input for making consensus and sustainable economic policies to steer the country out of current problems. He said hike in power tariffs would not only hit hard the export-oriented industries, it will also multiply problems for common man by inflating prices of almost every consumable item.

He said foreign business delegations during their visit to ICCI have shown great interest in Pakistan’s economy, but such measures will discourage them as production cost is a key consideration while making investment decisions in any country.

ICCI President urged the government to direct power distribution companies to improve their distribution system to curtail huge line losses as well as power theft instead of increasing the tariff and underscored the need of not making any increase in electricity rates to save the business activities from disaster.