LAHORE: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has urged the government to revert the cold storage sector from the commercial tariff to the industrial tariff.
This appeal comes in light of soaring electricity costs and inflation, which have significantly increased the operational expenses of cold storage facilities.
FPCCI President Atif Ikram Sheikh and Regional Chairman & Vice President Zaki Aijaz emphasized the need for this change during their address at the annual general meeting of the All Pakistan Cold Storage Association, held at the FPCCI Regional Office in Lahore.
They highlighted that the sector had been shifted from the industrial to the commercial tariff, a move that has exacerbated financial challenges for cold storage operators.
The FPCCI leadership also noted their efforts in addressing broader economic issues, including the reduction of electricity prices following the cancellation of Independent Power Producer (IPP) contracts.
They revealed that electricity prices have already decreased and are expected to drop by an additional 10 to 12 rupees per unit by March 2025.
Furthermore, the FPCCI’s advocacy has contributed to a reduction in the interest rate from 22% to 12%, with expectations of it reaching single digits soon.
In addition to these efforts, the FPCCI is actively working to secure relief for the construction sector and promote the early sowing of cotton to support agricultural productivity.
Mian Rahman Aziz Chan, Chairman of the All Pakistan Cold Storage Association, echoed these concerns, stating that the unilateral decision by NEPRA to shift the cold storage sector to the commercial tariff has significantly raised operational costs.
He appealed to the government to restore the industrial tariff and called on the Punjab Revenue Authority to cease harassment, emphasizing that the sector is fully compliant with tax regulations and operates within the documented economy.
Chan stressed the critical role of the cold storage sector in preserving agricultural products and extending their shelf life, underscoring the need for government support to ensure its sustainability.
The FPCCI assured the Cold Storage Association of its continued efforts to address their challenges and advocate for policies that foster growth and stability in the sector.
Copyright Business Recorder, 2025
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