Price hike of 16 per cent in electricity is a budget bomb prior to budget which will have disastrous fall out on the economy of the country and textile exports in particular, said Rana Arif Tauseef, Chairman Pakistan Textile Exporters Association.
Talking to newsmen, he said that the government is systematically increasing the price of electricity before the annual budget in order to announce that no new tax has been levied in upcoming budget, he said. New hike would set in a chain reaction of price hikes in essential items as also increase the cost of inputs and overheads in manufacturing of exportable goods. Resultantly the cost of production would escalate and our exports would be rendered uncompetitive in international market, he apprehended.
"We have already ousted from our traditional markets and our regional rivals have succeeded to capture our share of markets," he said. He lamented that frequent price hike in electricity which is an important input element in textile manufacturing process has hugely increased the cost of doing business making it almost impossible for Pakistani exporters to sell goods in foreign markets.
Pakistan is already facing tariff barriers and quota restrictions on its exports in USA and Europe and tough competition from regional rivals. He added that if our inputs cost continued to jump, we would be thrown out of international markets. He emphasised that the government should devise export conducive policies in greater national interest.
Severely criticising another 16 percent hike in power tariff, PTEA chairman said, "We already have the highest tariff in our region as in India, the electricity tariff for industry is 10.5 cents, in Bangladesh 10.75 cents and in Sri Lanka it is again 10.75 cents, whereas in Pakistan the tariff is already 15 cents." He said that such a harsh decision without consultation and consent of the stakeholders may result in widespread discontentment in the business community.
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