Tanners Association chief urges govt to review contracts with IPPs

KARACHI: Chairman, Pakistan Tanners Association (Southern Zone), Muhammad Shafi has taken a strong notice on increase of electricity prices by another Rs2.56/unit for the month of August 2024 as stated by NEPRA earlier this week.

He stated that the industry is already suffering a lot due to exorbitant increase in electricity prices in the past one year, resultantly the cost of electricity, gas prices and also taxation for the export related leather sector, especially after the Budget 2024-2025 presented in June.

The PTA (SZ) chairman, Muhammad Shafi urged to the Government to review its contracts with the IPPs, which is also in the demand of the FPCCI. A few IPP’s are making a lot of money due to IPP favoured contracts from the past, but the general public and industry at large is suffering in result of these contracts.

He expressed his concerned deeply that if timely steps are not taken by the Government, it will be too late and the leather sector will lose its potential and its export orders for which we strongly fear/apprehend that the export orders could be diverted to the neighbour competitors like India, Bangladesh, Turkey & china being lowest cost of production and other utilities at reduced prices offering by their Government to the Leather Industries at destinations, which would ultimate be the loss of country and the Leather Industry of Pakistan as well.

The Leather Industry of Pakistan is already in severe clutches of high cost of doing business in Pakistan because of high tariff of utilities in comparison with neighbour competitors and facing severe difficulties in securing the export orders for finished leather with other commodities from international market.

Copyright Business Recorder, 2024