Textile exporters criticise hike in power tariff

Textile exporters have strongly criticised the massive 39 percent raise in electricity and Rs 4 in petrol prices, saying that it would hit trade and industry hard besides jacking up the graph of inflation further high and demanded a relief package for badly affected textile industry.
Rejecting the unjust increase in the electricity prices, Rana Arif Tauseef, Chairman Pakistan Textile Exporters Association urged the Government to withdraw electricity and petrol price hikes as the bulk increase would shatter all segments of society.
He said that the current increase of 39 percent in the prices of electricity and Rs 4 in petrol would have devastating impact on the industrial sector as cost of production would increase manifold. He expressed the concern on sluggish production activities in the industrial units due to gas and power load shedding and said that the recent increase in electricity prices would give a big blow not only to the industry but to the textile sector as well which is backbone of the economy.
Rana Arif was of the view that the Government must devise a proper economic mechanism instead of adopting short-cut solutions on day-to-day basis to meet the energy demands. He emphasised that Government must adopt and implement a long-term strategy to overcome the energy crises and the rising inflation. He called for withdrawal of increase in electricity prices to strengthen the industry and trade activities. Industry could grow and become uncompetitive in the regional and international markets, if government cut in inputs prices, he maintained.
Rana Arif said that Industrial Sector in Pakistan is already in hot waters due to multiple factors including security issues, energy crisis, high interest rates, squeesing credit facilities and dwindling exports while any further increase in power tariff will add 'fire to the fuel' endangering the survival of trade and industry in the country. Factories remained closed for 210 days last year but the banks are charging mark-up on industrial loans for 365 days, he said. He demanded 50 percent relief in bank mark-up for the survival of the industry.