Plastic goods manufacturers have urged the government to reduce power tariff to save this sector, otherwise this industry would bleed to death, as it would face stiff competition from importers of plastic goods. Talking with Business Recorder, Majeed Ahmed, a plastic goods manufacturer, said that electricity accounts for a major portion of the production cost of plastic industry.
He said that imported plastic products are much cheaper as compared with local products because of high input of power and backward technology.
He said that India and China, the two close neighbouring countries, are very advanced in this field and their products are flooded in Pakistan.
They are enjoying the benefit of low power tariff as in China industrial power tariff ranges from 5 to 7 cents and in India power tariff is around 7.6 to 8.6 cents which is higher than China's industrial tariff but is still lower than that of Pakistan's industrial power tariff.
He said that because of low cost of production in India and China their products are flooded in Pakistan posing serious threat to Pakistan's plastic goods manufacturers.
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