KARACHI: Muhammad Kamran Arbi, President of SITE Association of Industry, has demanded the government to seriously look into the matter of exorbitant electricity tariff for all categories of consumers, particularly export and general industries tariff and rationalize the same taking into consideration the actual cost of per unit production.
In a statement, SAI President said that there is much unrest amongst the business community due to very high electricity bills. The high energy tariff is fast making industries – export oriented, and otherwise – uncompetitive in the international markets where Pakistan’s competitors particularly Bangladesh, India, Indonesia, Vietnam & Egypt have an edge over us.
“Pakistan simply has no competitive edge on any country, and it is positioned at the bottom where prices of industrial energy input are concerned. Industrial production requires energy security (particularly electricity, gas and water) with utilities being competitively price, of good quality and having consistent supply.”
Mr. Arbi termed the current situation as ‘alarming’ and stated that it calls for immediate intervention from the government which is a must to keep the wheels of industry moving to ensure that the labor force remains gainfully employed, and the country does not lose on export orders in the international market.
“Energy security is a basic requisite for industrial growth anywhere in the world. However, for us it remains a pipedream! Moreover, the contracts signed with IPPs are the root cause of exorbitant power tariff. The capacity payment has crossed alarming levels already without any significant addition in electricity consumption. This burden is being transferred to consumers who are already crumbling under the weight of high inflation and squeezing them further. The agreements signed with IPPs have now become a question of survival for the entire nation.” added the SAI President.
SAI President has appealed to the Prime Minister of Pakistan, Finance Minister and the Energy Minister to immediately look into the matter and take urgent remedial measures in the larger interest of the nation.
