18.5% Power Tariff will increase Cost of doing Business: PIAF

The Pakistan Industrial and Traders Associations Front (PIAF) chairman Irfan Iqbal Sheikh has shown his fears 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 over Rs.11 per unit, up by almost 18.5%.

Irfan Iqbal Sheikh, in a joint statement along with senior vice chairman Tanveer Ahmed Sufi and vice chairman Khawaja Shahzeb Akram, called for withdrawal of the whooping increase, urging government to reconsider the decision to control the rapidly going up cost of doing business, which is the actual reason of decline in export.

The rise in average tariff of power distribution companies is also aimed at passing on Rs.118 billion to the consumers. Previously NEPRA had determined average tariff of Rs.10.9 per unit for 2015-16 which was recently increased by 4.4 percent to Rs.11.38 per unit. However now it will 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 now when the activity has just begun, an unprecedented increase in power tariff has been announced to the disappointment of the manufacturing sector.

He rejected the hike in electricity tariff by National Electric Power Regulatory Authority for 2015-16 and termed it an unwise decision as it would further enhance the cost of doing business and hurt exports.

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.