LAHORE: The Pakistan Industrial and Traders Associations Front (PIAF) chairman Irfan Iqbal Sheikh has feared that the proposed hike in industrial and commercial power tariff will disrupt market equilibrium, as the government is going to raise average tariff of power distribution companies to Rs 12.9 per unit from Rs 11 per unit, up by almost 18.5 per cent.
Sheikh, in a joint statement along with senior vice chairman Tanveer Ahmed Sufi and vice chairman Khawaja Shahzeb Akram, called for the withdrawal of the tariff increase, suggesting the government to reconsider the decision to control the rapidly growing costs of doing business, which is a major reason for the decline in export.
The rise in the average tariff of power distribution companies will pass on Rs 118 billion to the consumers. Previously NEPRA had determined average tariff of Rs 10.9 per unit for 2015-16, that was recently increased by 4.4 per cent to Rs 11.38 per unit, which will now jump to Rs.12.9 per unit.
PIAF chairman said that there was almost no economic activity in the country due to multiple internal and external challenges and energy shortage and an unprecedented increase in power tariff will discourage the manufacturing sector.
Chairman PIAF said that the power tariffs in Pakistan for industrial and commercial consumers were already the highest in the region due to which our exports have become uncompetitive in the international market.
