KARACHI: It is surprising that under compliance of existing highest electricity and gas tariff rates, low industrial growth, influenced commercial sector, pressurized categories of consumers including household, Rs.7.50 per unit hike in basic power tariff has been newly formulated, said Ateeq ur Rahman, economic & financial analyst.
This jump of almost 35% increase in tariff per unit will force like 60% of job losses by default of industrial and manufacturing sector of the country. Moreover, the household which was already under stress of a highest tax-paid electricity cost will not be able to pay the exorbitant upcoming bills of electricity thus aggravating the agony of middle class, as well as, common man. Previously for them the electricity bills were more than their earnings or salaries, and now under the new circumstances, they will not be able to pay these bills from their own personal sources or even by borrowing.
Ateeq said everyone appreciates that the country has been saved from default but the citizens are at the verge of default due to such massively hiked bills inclusive of electricity charges, with fuel adjustment charges, additional fuel surcharges, electricity duty, sales tax, further tax, extra tax, income tax, TV fees, etc. These bills will definitely default the consumers.
He added that it is a common practice all over the world that consumption of more units, consequently have lower rates but here it is contrary here in our country with “more units, higher the slabs; hence, higher the rates”.
The authorities are requested to reverse the proposed hike in basic power tariff in the larger interest of people.
However, Central leader of the Businessmen Forum, Abdul Rashid Abro, has expressed his concern over the government's approval of a 50% increase in gas prices after the IMF conditions, saying that the government has already increased the electricity prices immensely, which will adversely affect the business class and the poor and middle class people of the country.
As the energy cost increases, the survival of industrial, commercial, agricultural and other sectors will be in danger, he said, adding that the increase in power tariff will deal a severe blow to domestic exports, which are already decreasing, while new investments are also negligible, industrial units are barely continuing their production process.
Abro said that the approval of increasing the price of gas by 50% after 7.50 rupees per unit of electricity will be disastrous for the industrial sector. He demanded from the Prime Minister Mian Shehbaz Sharif to withdraw the decision to increase the prices of electricity and gas and not to push more than 25 Crore people of the country into the quagmire of difficulties on the dictation of the International Monetary Fund (IMF).
Copyright Business Recorder, 2023