PIAF flays government's power tariff raise

The PIAF-Founders Alliance has strongly criticised Rs 2.04 increase in the electricity tariff and urged the government to withdraw the raise in the larger interest of trade and industry, which are already facing multiple internal and external challenges.
Chairman PIAF-Founders Alliance, Mian Anjum Nisar and Chairman of PIAF-Founders Alliance Steering Committee, Mian Mohammad Ashraf Thursday were talking to the delegations of various markets. They pointed out that electricity prices in Pakistan are already higher than other countries of the region and the new hike would push the crisis-hit industrial sector to the wall. They questioned that how Pakistani merchandise would be able to win buyers in the international market when their prices would be higher than the same quality goods of other countries.
They said that according to reports, more than 40 percent electricity is being stolen but instead of controlling the theft and line losses, the authorities are busy in making further increase in electricity prices. It is a proven fact that the raise in the tariff always leads to increase in the incidence of power theft, they added. They said that they had conveyed to the government that the country would become a trading hub if appropriate measures to ensure proper supply of cheap electricity to the industry are not taken but nobody bothered to even listen to the voice of the sector.
The PIAF high-ups said that the flight of capital has intensified in recent years only because of flawed government policies, especially those relating to energy and infrastructure sectors. Had a little attention given to these areas, there would have been no relocation of industrial units to Bangladesh and Malaysia, they maintained. They observed that energy is a main source of development and electricity prices are highly correlated to the economic growth and increase in electricity tariff would scuffle the trade and industry sector.
They said that country is facing a huge energy deficit since last few years. Massive load-shedding has crippled the industrial activities, thousands of industrial units have closed down or relocated while million industrial workers have lost their jobs but instead of initiating any mega power projects, government remains busy to increase the power tariff. They said that electricity rates in Pakistan are already very high and posing massive challenges to make the industry internationally competitive.
PIAF high-ups feared that with the increase in electricity tariff, industrial production cost would further rise and export oriented industries would face more difficulties to compete in the international market with competitors like China, India and Bangladesh who were caring their industries like beloved kids. The price increase would badly affect the agriculture sector of Pakistan, which is the backbone of the economy and feeding more than 70 percent of the population.
They said that despite cutting-off lavish expenditure, government continuously increasing the energy prices, which have touched the alarming situation, but government is not showing sympathy with the Pakistani people and adding more fuel to fire. "The hike in electricity prices would lead trade, industry and common man towards the destruction", they added.