Urgent call to cut electricity tariffs to Rs26/kWh by Ahmed Chinoy

February 25, 2025 (MLN): Pakistan’s economic stability is under severe threat as high electricity tariffs continue to cripple industries, endanger businesses, and jeopardize employment nationwide.

Ahmed Chinoy H.I, S.I, Chairman of the Pakistan Cloth Merchants Association, has called for an urgent reduction in electricity tariffs to Rs26 per kWh.

Representing Pakistan’s workforce, business communities, and industrial sectors, he emphasized that this change is not only critical for survival but also essential for revitalizing the economy and safeguarding millions of livelihoods.

Mr. Chinoy highlighted that for too long, industries and small to medium-sized businesses have borne the brunt of exorbitant electricity costs, making it imperative to lower tariffs to remain competitive in the global market.

A reduction in tariffs would provide immediate economic relief by lowering production costs, enhancing profitability, and ensuring sustainability.

Competitive energy prices are key to attracting foreign investment and fostering a vibrant industrial ecosystem, while affordable electricity is crucial for stabilizing the supply chain, which forms the backbone of the national economy.

High electricity tariffs have already led to severe consequences, including business closures, job losses, and hindered innovation, as per the press release.

Many businesses have shut down due to unsustainable energy costs, leading to irreversible economic losses, while thousands of jobs remain at risk, exacerbating Pakistan’s unemployment crisis.

High operational costs discourage startups and established companies from pursuing expansion and technological advancements, negatively impacting the broader economic landscape.

Without immediate relief, the socio-economic fabric of the nation will continue to deteriorate.

The longer the government postpones the reduction of tariffs, the more severe the repercussions will be, potentially leading to an economic downturn, increased financial strain on businesses, and reduced global competitiveness.

Prolonged high tariffs could deepen the recession, putting Pakistan’s economic recovery at serious risk, while continued financial pressure will limit businesses’ ability to invest, innovate, or sustain basic operations.

In an increasingly competitive global market, delays in policy reform will disadvantage Pakistan, potentially leading to a loss of market share in key sectors.

Mr. Chinoy stressed the need for the government to pass on savings from Independent Power Producer (IPP) contract restructuring directly to consumers, ensuring equitable distribution of benefits and demonstrating accountability in public resource management.

He emphasized that these savings should not merely boost corporate profits but should be directed towards economic justice and fairness.

The government must act responsibly to restore trust in public institutions and ensure that contract savings contribute to the public good.

In a strong call to action, Mr. Chinoy urged the government, policymakers, and all relevant stakeholders to prioritize this critical reform.

Reducing electricity tariffs to Rs26 per kWh is not just a policy adjustment it is a necessary lifeline for industries, a safeguard for employment, and a catalyst for a stronger, more competitive Pakistan.

He called on the government to take immediate action without bureaucratic delays, emphasizing that the future of industries, the economy, and the well-being of every citizen depend on it.

He urged all stakeholders to stand together, advocate for change, and demand that Pakistan’s government implement the tariff reduction now, ensuring a more prosperous and resilient future for the nation.

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