KARACHI: Business and industrial community has hailed the directives of Prime Minister Imran Khan to provide relief in power tariff for Small and Medium Enterprises (SMEs) and other industries and termed it "prudent" for the economic growth of the country.
Faisal Moiz Khan, President North Karachi Association of Trade & Industry (NKATI), has lauded cut in electricity tariff for SMEs and industries, saying that Prime Minister Imran Khan's decision would definitely reduce production cost.
However, it is also important to reduce gas and water tariff, which will not only boost the country's exports but also help deal with the dire economic situation due to COVID-19 pandemic. He said that Prime Minister Imran Khan has announced 50pc cut on additional electricity usage for SMEs, while industries would be provided 25pc relief on additional usage of electricity from 1st November 2020. The industries would be provided electricity at off-peak hours' rate for 24 hours for next three years.
Faisal Moiz Khan said that one of the major reasons for the increase in production cost was higher tariffs of electricity, gas and water. However, relief package for SMEs and industries would reduce production cost and enable exporters to compete in global markets. SMEs are backbone of economy of every country, we request PM Imran Khan to promote and give more facilities to SMEs like this.
"In a recent meeting of industrialists with Prime Minister Imran Khan in Islamabad, he had requested for reduction in taxes as well as appropriate cut in utility charges to provide relief to SMEs and industries. "Prime Minister Imran Khan fulfilled the promise made to the industrialists by announcing cut in electricity tariff which is hailed by the entire industrial community," Faisal Moiz mentioned.
He further added that the country was once again witnessing an increase in the severity of the coronavirus epidemic. Only by providing relief to industries in such a situation can the economy be saved from the effects of the corona epidemic.
He said that Prime Minister's package would boost the industries in the country as well as create vast employment opportunities and would also enable the declining exports of Pakistan to increase again which would stabilize the economy.
"For the first time in the history, SMEs and industries have been given such a big package in the form of cut in electricity tariffs which is the vision of the PTI government. Prime Minister Imran Khan wants to bring an economic revolution in the country. In this context, it is a big step", NKATI president opined.
Faisal Moiz Khan added that reduction in production cost was essential for the growth of industries in the country. However, high gas tariff is also a major reason for the increase in production costs, so also cut in gas and water tariffs could boost industries on a large scale and bring about a major economic revolution in the country.
Chairman of National Business Group and President Pakistan Businessmen and Intellectuals Forum Mian Zahid Hussain has lauded the decision of Prime Minister Imran Khan to provide relief in power tariff to the industrial sector.
He said that inflation rate cannot be controlled unless food prices are brought down as the government will be unable to bring down inflation if the wheat support price is fixed at Rs2000 per 40 kg. Mian Zahid Hussain said that inflation is more widespread in rural areas as compared to urban areas where it has set new records necessitating steps aimed at relief. He said that presently wheat is being sold at Rs2200 to Rs2400 per 40 kg and it can come down to Rs1800 to Rs1900 if the wheat price is fixed at Rs1600.
Copyright Business Recorder, 2020
Comments
Comments are closed.