LAHORE: The Lahore Chamber of Commerce and Industry (LCCI) has appreciated the government's proactive measures to review annual agreements with IPPs aimed at bringing down per unit cost.
“This initiative is seen as a critical response to the long-standing demand of the Lahore Chamber of Commerce and Industry regarding high cost of electricity that has hit the businesses, particularly the manufacturing and export sectors,” said LCCI President Mian Abuzar Shad, Senior Vice President Engineer Khalid Usman and Vice President Shahid Nazir Chaudhry while talking to various groups of businessmen.
The LCCI office-bearers emphasized the importance of affordable energy as a fundamental driver of economic growth. They said that the government's recent initiatives of tackling the IPPS issue to bring down energy prices are not just welcome news for the business community but they represent a vital lifeline for many industries that have been struggling to cope with exorbitant costs.
They said that the reduction in energy cost would enhance the overall competitiveness of Pakistani products, enabling the businesses to operate more efficiently and increase their productivity. They pointed out that lower energy costs would allow companies to pass on savings to consumers, thereby stimulating demand and potentially leading to greater economic activity.
They said that the measures to reduce energy prices are a significant milestone and would provide much-needed relief to businesses that have been burdened by high operational costs. They further added that the relief in energy prices would particularly benefit sectors such as manufacturing, agriculture and exports-oriented industries, which are vital to Pakistan's economy. They stressed the importance of maintaining stable and predictable energy pricing to support sustained industrial growth and to encourage foreign investment.
The LCCI office-bearers also termed the government efforts as a good news for Small and Medium Enterprises (SMEs) that often face cash flow issues.
They said that SMEs form the backbone of the economy and are critical to job creation. They said that this initiative will empower SMEs to invest in innovation, expand their operations and contribute more significantly to the national economy. They said that the government’s approach to the needs of the business community is commendable and foster a collaborative spirit necessary for economic recovery and growth.
In addition to celebrating the government's efforts, the LCCI leadership reiterated their longstanding demand for a comprehensive review of agreements with Independent Power Producers (IPPs). This has been a contentious issue with many in the business community arguing that the current agreements contribute to inflated energy prices and financial strain on industries.
Mian Abuzar Shad pointed out that addressing the concerns surrounding IPP agreements is essential for creating a fair and equitable energy pricing structure.
“We believe that a thorough reassessment of these agreements could lead to more favorable terms that will benefit both consumers and producers,” he stated. He further urged the government to engage in meaningful dialogue with stakeholders to ensure that the energy sector operates efficiently and transparently.
The LCCI leadership underscored the need for ongoing collaboration between the government and the business community to ensure further improvements in energy infrastructure and policy formulation. They stressed that continued efforts in this direction will yield long-term benefits for the economy, helping to create a more conducive environment for investment and growth.
Copyright Business Recorder, 2024
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