Business community including federal and local trade bodies is scheduled to meet President Asif Ali Zardari on Friday to withdraw present hike in power tariff, Business Recorder learnt on Wednesday. Source said that the delegation of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) would express their concerns over the badly affected increased power, gas tariff, State Bank monetary policy etc.
It would also demand president to terminate the high officials of Oil and Gas Regulatory Authority (OGRA) and National Electric Power Regulatory Authority (Nepra) and appoint the representative of business community.
Sources said the country is facing prevailing threats of shutting down of industries at large scale especially all small and medium industries, as they could not afford the increase tariff of power and gas. They said this discouraging process has started as three to four industries are winding up their businesses, while most of business poised to close their industry.
Sources said the business community would also present the issue of difference of power tariff of Karachi Electric Supply Corporation (KESC) and other distribution companies. They said that although the KESC authorities had got withdrawn its tariff from Water and Power Development Authority from Rs 6.50 per units to Rs 3.71, but it seemed to reluctant to provide relief to the Karachitiis especially industrialists and traders.
They said that the business community would ask the president to show them the KESC business tariff. They said that now KESC is facing 38 percent losses in account of line loss and theft of power and charging these losses from the poor people and badly affected industries.
They said internationally there is a standard that the distribution companies face maximum losses of 15 percent and could not charge these losses from people, but the KESC charges 38 percent losses from its customers by including into cost of electricity. They said that business community would not compromise on the increased tariff of commercial, residential and small industrialists.
They said that the industrials would except minimal increase in power tariff but it should be justified. The sources said the business community would also discuss the power generation through gas, water and other ways to increase the capability of power generation. The sources said the KESC is charging fuel adjustment charges in the bills according to fuel prices including furnace oil at $120, which was now cut by $60 per barrel.
The sources said that business community would also discuss the skyrocketing prices of gas, as the gas prices had badly affected the production cost and it is going to high and high. Moreover, the government is mulling to increase it by 33 percent, which is completely unjustified. The sources said the business community is able to compete the regional markets including India, Sri Lanka Nepal and especially Bangladesh.
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