‘Incentives for industry needed’ KATI chief condemns increase in tariff of K-Electric

31 May, 2022

KARACHI: Korangi Association of Trade and Industry (KATI) President Salman Aslam has rejected approval by the National Electric Power Regulatory Authority of an increase of Rs 4.82 per unit in tariff of K-Electric.

He said that the government has already announced a historic increase in the prices of petroleum products which has upset the industrialists.

He said that no industry would produce goods at a loss. The cost of production had gone up so much that the industrialists had no choice but to shut down their units.

The recent 1.5 percent hike in interest rates, an increase of Rs 30 per litre in prices of petroleum products and now an increase of about Rs 5 per unit in electricity tariff is unbearable.

Salman Aslam said that Pakistani exporters are barely able to compete with exporters from India, Bangladesh and Indonesia, but the government is not giving any concessions to the industry which is a matter of concern.

He expressed fears that if production costs continued to rise, capital outflows would increase and industrialists would relocate their industries, leading to a sharp rise in unemployment.

The KATI president said that K-Electric had hinted at further load-shedding and reduction of power supply to industrial units in the coming days, which is a worrying development.

He demanded of the government to immediately announce incentives for the industry and ensure uninterrupted supply of electricity to the units to prevent unemployment and evacuation of investment.

Copyright Business Recorder, 2022

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