Omar Ayub Khan, Federal Minister for Energy declared an increase of Rs1.95 per unit in electricity rates. In response to this announcement, Rana Azhar Waqar, Chairman of All Pakistan Cotton Power Looms Association said that this increase will impair the economic activities and investor confidence. Action should have been taken against electricity theft for recovery instead of increasing the energy rate.
This increase of Rs. 1.95 will further weigh down the people, the economy, agricultural sector, Textile, and related industries as the inflation will be increased to 2%. The decision on production and exports will impose an additional burden of Rs 200 billion on consumers, in addition to the burden of sales tax, fuel adjustment and quarterly adjustment said Rana Azhar Waqar while addressing the business community.
Moreover, the power loom owners express concern due to the increase in electricity tariffs, the exports will be most likely to suffer the most as cotton trade volume will be reduced even further. The export trade once-flourishing will be destroyed due to this unfortunate increment. The country’s exports would not be able to compete with China, Bangladesh, and India where power tariffs were seven to nine cents says Khaliq Qandil, Chairman of Pakistan Powerloom Owners Association.
Oman Ayub Khan says that the business community was patiently awaiting the good news that will be in the favor of a reduction in electricity rates but this heavy price bomb was dropped on them, crushing all the expectations of successful negotiations with IPPs.