Announcement of electricity prices upto 70% slated

KARACHI: APTMA spokesman has strongly criticizes announcement of increase in electricity prices upto 70% by the government and urged to withdraw it.

He said that it is understandable if the tariff is raised by about 10% to 15%but not such a drastic increase of 70%. APTMA spokesman said that the recent hike in electricity tariff would make textile export costlier and render Pakistani textile exports uncompetitive in the international market.

“Subsequently, India, China and Bangladesh would capture markets presently dominated by Pakistani exporters. This
increase will mostly benefit Indian textile industry at the cost of Pakistani textile industry as their products would become more attractive in the international market.”

He suggested the government that before making any dramatic changes in the electricity prices, the stakeholders of the industry should have been taken into confidence and engaged to work out the electricity tariff.

APTMA spokesman stated that the government was not in a position to provide uninterrupted power and gas supply to the industry due to which industry was facing increase in cost as a result of less than capacity output and now such a hefty tariff increase could not be justified.

He said that since the country was passing through an era of economic uncertainty persistent inflation, high cost of doing business as a result of which industry is facing severe challenges such as war on terror and insecurity etc. such cost increases could lead to decrease in export earnings and escalating trade deficit. He feared that if the precautionary measures are not taken carefully the survival of the industry would become elusive.