Strongly opposing the overall 30 percent hike in power tariff (gas and electricity) from January 1, 2010, Islamabad Chamber of Commerce & Industry has called upon the government to immediately withdraw it as it will spell disaster to business & economy.

Chairing a hurriedly called meeting of businessmen at ICCI to discuss this issue, Zahid Mabqool, President, ICCI said that business community was hoping for better times to return in 2010 but government has dashed all such hopes by giving the New Year gift of 18 percent hike in gas and 12 percent in electricity tariffs.

He said it seems that government was working to fulfill the agenda of donors and ignoring the interests of country because it was taking decisions that are bound to play havoc with the already struggling economy. He said the latest hike will further aggravate the situation as it will massively escalate the production cost, making industrial survival unviable. He said it will especially penalize the export-oriented industry and lifeline consumers. 

He said Prime Minister Syed Yousuf Raza Gilani on August 28, 2009 while talking to US National Security Council’s Senior Director for International Economics David Lipton had said that power tariff would not be raised as long as people faced a severe shortage of electricity. He called upon the Prime Minister to honor his words by reversing the unprecedented power tariff hike as the country was still facing acute power shortage.

Zahid Maqbool said many potential foreign investors were already showing reluctance to invest in any new venture in Pakistan due to security problems causing 52 percent drop in foreign direct investment during July-Nov: 2009. However, current huge hike in gas and electricity tariff will further discourage the foreign investors depriving Pakistan of crucial contribution of FDI.

He said this hike would also lead to massive inflation in the country and trigger a countrywide agitation apart from causing flight of capital, massive unemployment and decline in government tax revenues.
 
Therefore, it would be wiser if the hike in gas and electricity tariff is withdrawn forthwith to save trade, industry and the economy from total destruction, he stressed.