The flood affected Pakistan Cotton Ginners' Association (PCGA) has approached Prime Minister Yousaf Raza Gilani for reduction in electricity tariff, which is hurting the industry, official sources told Business Recorder.
"We are unable to run our factories due to increasing electricity tariff as it is increasing our cost of production," said Mahr Rab Nawaz Lak in a letter to the Prime Minister. The Association has expressed concern over the following measures that are hurting the industry: (i) withdrawal of subsidy @ 25 percent on the electricity bill from July 1, 2010; (ii) 7.6 percent increase in power rates, (iii) Fuel Price Adjustment (FPA) increased @ Rs 0.91/per unit from May 1, 2010 and Rs 0.64/per unit from June 1, 2010; and (iv) Pepco's announcement to charge Rs 12.50 per unit from those who consume up to 400 units in a month.
"In these circumstances and given the continuous increase in electricity prices, cotton ginners would be compelled to shut down their factories. You are personally well aware that almost 90 percent cotton ginning factories are in the remote areas and many of our members have been badly affected by worst floods, especially in District Mianwali, Multan, Muzaffargarh, D G Khan, Rajan Pur, Layyah, Sukkur, Mirpur Khas, Sanghar, Nawab Shah," Lak said in the letter addressed to the Prime Minister.
He stated that crops have been destroyed, besides homes and infrastructure likes roads and bridges, adding that ginners can no longer afford such high electricity rates. "You are requested to consider the genuine request of our members to reduce electricity rates and issue instructions to concerned authorities to save the ginners community from crisis," Lak added.
PCGA is undoubtedly unaware that the government is already in the process of further enhancing tariff by 9 paisa per unit for agriculture tube wells!
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