Business and industrial community while expressing deep concern on the recent announced increase in power tariffs from January said that increased power tariffs and petroleum prices have brought the industry on the verge of closure.
It is an irony that due to unconstructive decision of public sector, the private sector and common-man are the worst sufferers being penalised against the sins they have never committed, they voiced.
They said that the hike in power tariffs and petroleum prices would further worsen the living standard of masses due to unaffordable tariffs, whereas, the industrial and business concerns are already in doldrums due to highest-ever increase in the cost of manufacturing and doing business owing to the multiplicity of taxes and levies and excessive utility tariffs.
They urged Prime Minister Imran Khan to take immediate notice of rise in energy and petroleum prices and unavailability of gas for industry.
Chairman, Pakistan Tanners Association (PTA), Sheikh Afzal Hussain strongly condemned the proposed increase in the prices of electricity by 38 percent under quarterly adjustment formula framed by NEPRA and further increased fuel, which is termed to be another hammer on export of leather sector, which is already in declining trend and facing numerous issues for the promotion of exports of leather sector.
He shared the statistics of the industry for the export made during period of July-June (2018-19) which was US$ 252 million for finished leather as compared to the corresponding period was US$ 330 million while overall leather sector exports concluded during the period of July-June (2018-19) was US$ 843 million as compared to the corresponding period was US$ 948 million, which revealed sharp decline in the export of finished leather & total leather sector of exports because of various reasons particularly non-availability of level playing field to this vital sector of the country as compared to neighbour competing countries.
He articulated that such irrational decisions taken by the government of Pakistan would ultimately be a last nail on coffin of leather sector of Pakistan and rest of core export commodities of the country and it would become completely impossible for the leather industry to survive in the present business environment prevailing within the country and last unfortunate version to be the closure of the vital industry of the country completely.
He urged Prime Minister of Pakistan, Imran Khan Niazi and Advisor to PM on commerce & textile, Abdul Razak Dawood to look into the significant plight of the industry for the withdrawal of such irrational/unjustified policies/tariffs on utilities of the leather sector of Pakistan and rest of export oriented industries of the country to provide level playing field otherwise there would be no doubt about that the export of leather sector of Pakistan would further be decreased drastically, which is already at bottom of line comparatively to previous years.
President of Korangi Association of Trade & Industry (KATI) Sheikh Umer Rehan, has expressed concern over rise in petroleum prices and power tariff.
Sheikh Umer Rehan said that rise in petroleum prices and power tariff would directly affect the cost of production and price hike for common people.
He said that due to higher prices of diesel, transportation of raw material and finished goods would also become costlier and it will increase the cost of production for industry.
He said that due to shortage of gas and higher prices of energy, industries were already facing great deal of trouble and many units have been out of production. Sheikh Umer Rehan mentioned that the recent rise in petrol prices and power tariff would also impact the daily life of common men drastically.
He said that industry in the country was already lagging behind due to the higher cost of production and it's one of the biggest hurdle in the way of progress in exports sector.
He said that conditions were already unbearable for the industry and any rise in the energy prices would prove a disaster. President of North Karachi Association of Trade & Industry (NKATI), Nasim Akhtar and Patron in Chief NKATI Capt Moiz Khan opposed the National Electric Power Regulatory Authority (NEPRA) decision to increase power tariff for industries and refused to accept this decision.
In an appeal to President of Pakistan Arif Alvi, Prime Minister Imran Khan, Power Minister and Chairman NEPRA, they demanded that the increase in power tariff of K-Electric under the head of fuel adjustment charges should be cancelled immediately.
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