UBG Patron-in-Chief advocates reduction in electricity tariffs

KARACHI: SM Tanveer, Patron-in-Chief of the United Business Group (UBG), emphasized that to save the country, electricity prices must be lowered.

He stated that the capacity charges amount to Rs. 9, and last year’s average fuel cost was Rs. 9.50. Combining all costs, the per-unit electricity price comes to Rs. 25, so the government should not set the price higher than this.

Speaking to the media at a luncheon in Karachi, S.M. Tanveer said the business community is confident that electricity prices will decrease within a month as the task force is working on it. He expressed hope that electricity rates will be reduced in October, as saving the country is vital.

Present at the event were UBG President Zubair Tufail, Chairman Sindh Zone Khalid Tawab, Secretary-General Hanif Gohar, FPCCI Senior Vice President Saqib Fayyaz Magoon, Vice President Zaki Ijaz, Mian Zahid Hussain, and Ahmad Chinoy.

Responding to a question from the media, S.M. Tanveer remarked that the approval of the IMF loan is an important achievement, but there is also a need for a significant reduction in government expenditures.

He said that the loan obtained from the IMF has to be repaid by running businesses, and the practice of borrowing for interest payments can no longer continue.

He also stated that CPI inflation in September will be at 7.5%, and interest rates should be brought down to single digits accordingly. Additionally, he noted that dollarized inflation is now zero; the dollar was at Rs. 280 in September last year and remains Rs. 280 this September.

Regarding exports, SM Tanveer emphasized that export-oriented industries are zero-rated, and the government will need to reinstate this zero-rating facility.

The sale of loss-making institutions is part of IMF conditions. It’s not just PIA and the steel mills, but 80 identified loss-making entities that need to go through privatization to save the national treasury.

Copyright Business Recorder, 2024