Exporting industrial sectors Power tariff may be fixed at Rs 7.37 per unit

The federal government has agreed to mull fixing the five exporting industrial sectors' tariff at Rs 7.37 per unit for three years, said reliable sources. They said the proposal was considered in a meeting held in the provincial metropolis the other day. The industry representatives urged the federal textile board to remove Rs 3.63 tariff rationalization and financing cost (TR&FC) surcharge to make it competitive internationally.
As per proposal, removal of Rs 3.63 per unit surcharge out of Rs 11 per unit industrial tariff would reduce tariff to Rs 7.37 per unit and bring the export-oriented sectors at par with regional competitors. At present, the distribution companies are charging Rs 11 per unit from the industrial units, which includes Rs 3.63 TR&FC surcharge. The industrial sectors, particularly the one exporting in the international market, has been lagged behind against the regional competitors like India, Bangladesh and China where the industrial units of similar category are paying Rs 7 per unit against the electricity consumption.
The industry sources said this one step would bring back the industry on its feet internationally. New registration of industrial units with DISCOs would be possible with the revival of 30 percent closed capacity besides checking the free ride of regional competitors in the international market. Also, it would boost investment under the China Pakistan Economic Corridor (CPEC) arrangement and push new investors to execute their plans. The comfort level of domestic growers and industrial labour would also rise, they added.
A tariff rationalization and financing cost (TR&FC) surcharge of Rs 3.63 per unit has snatched the competitive strength of local industry, particularly the five exporting sectors, and Pakistan is fast losing space on the international shelves of export markets. The industry sources said the competitive edge of the Punjab-based textile industry has badly been hurt due to the imposition of this surcharge and efforts are afoot to de-notify it with the help of the federal government.