ISLAMABAD: Pakistan Association of Large Steel Producers welcome the caretaker government’s initiative in collaboration with the SIFC to lower the power tariffs to9 US cents/KwH for the industries.

PALSP considers this initiative asa great step towards the revival of the local industry in the current challenging times. The move, if enacted, holds the potential to inject billions into the economy and propel the steel industry to new heights.

PALSP highly appreciates the efforts of Minister for Energy, Mr. Mohammad Ali to enhance the competitiveness of industries. The proposal of slashing industrial power tariffs is a positive step and if it materializes then it will not only lower production costs but also reinstate industrial competitiveness in the global market. This kind of structural reforms will provide conducive environment for industrial growth and boost exports.

Wajid Bukhari, Secretary General at PALSP, lauded the government’s commitment to industry competitiveness, stating, “The proposed reduction from 16 US cents/kWh to 9 US cents/kWh is a game-changer.

This strategic measure has the potential to unlock an estimated $2.5 billion annually in economic activity, revitalize the steel sector, and create thousands of jobs.”. The measure will not only reignite the engine of the economy but would also go a long way in boosting the confidence of industrialists to invest more.

Industry believes that lowering the industrial tariffs will provide great relief to energy intensive industries like steel sector where a major chunk of cost of production consists of energy costs. So, reduction in energy cost will help the industries in becoming competitive and to unleash growth potential. The reduction in production costs will help the steel industry to reinstate its competitiveness in the global market.

Copyright Business Recorder, 2024