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Power price increases are deemed disastrous for industries

KARACHI: On Saturday, SITE Association on Industry dubbed the high power tariff a calamity for businesses.

Abdul Rasheed, President Site Association of Industry, has described this intolerable increase in electricity tariff as disastrous for the industries while also expressing his deep concern about the Fuel Adjustment Cost (FAC) and the reintroduction/increase in fixed charges.

In a letter to Prime Minister Shahbaz Sharif and Federal Minister for Power Engr. Khurram Dastgir, SAI Chief demanded that FAC, fixed charges, and an increase in electricity rates be immediately removed in order to maintain uninterrupted production activities; otherwise, the industries would be unable to function due to cost overruns.

“The business community cannot bear the extraordinary increase of 80pc in electricity rates, rather industrialists will be forced to close their units as a result of this move, as they are not able to bear this huge increase in electricity rates,” he said, adding that the base tariff has been increased by Rs 9.8972 per unit, which has increased the price per unit from Rs 19 to around Rs 30 per unit.

Apart from this, 17pc sales tax and income tax will also be applicable on this increased basic tariff of Rs.30 per unit of electricity. When all these components are combined, an unbearable minimum impact to 80 per cent.

The SAI president added that a number of tariffs for industries that had previously been suspended under the policy of peak and off-peak hours had been reintroduced. The production costs for the industries will skyrocket as a result. Because they are unable to shoulder this weight given the severe economic crisis the nation is experiencing, industrialists can lower their production by 50% in such a situation.

Abdul Rasheed asked the Prime Minister and the Minister of Power to protect the economy by preventing an excessive increase in fuel adjustment costs (FAC), fixed charges, and power rates.

It should be withdrawn immediately so that the anxiety of the industrial community can be removed, and they can continue their productive activities with satisfaction and create ample employment opportunities.

Abdul Qadeer

My Name is Abdul Qadeer. And CEO Pakistanwap ( JamilBaba ) 😊

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