UBG raises questions over govt’s power relief ‘winter package’

KARACHI: S M Tanveer, patron-in-chief of the United Business Group (UBG) has raised questions regarding the government’s power relief winter package.

In a media conversation, S M Tanveer stated that the package is of no benefit. He suggested that instead of giving surplus electricity rates to IPPs, the government should have provided it to the industry for three months, which would have been more beneficial.

Tanveer mentioned that the country’s economic indicators are improving, inflation will decrease further, and interest rates will also likely be reduced. He emphasised that government actions should be focused on reviving the industry.

He pointed out that five IPPs have already closed, contracts with bagasse plants are also ending, and discussions are ongoing regarding the government’s own IPPs.

He had hoped for a reduction in electricity rates in November but expressed confidence that electricity prices would decrease soon.

The UBG patron-in-chief noted that only when electricity rates are reduced can economic activities pick up speed. The government has provided a discount on electricity usage for additional units during the winter, but Tanveer questioned how there would be additional electricity usage when no new industries have been established in the country over the past three years.

Copyright Business Recorder, 2024