Relief to industrial units ‘Condition of MDI fixed charges should be removed’

FAISALABAD: Chairman All Pakistan Cotton Power Looms Association (Registered) Chaudhry Ijaz Ahmad Nagra said that instead of providing facilities to IPPs, do not take cruel measures like maximum demand indicator (MDI) charges. He demanded that in order to give immediate relief to the industry, the condition of maximum demand indicator fixed charges should be removed as under it charges have to be paid even in case of closure of industrial units.

He said that due to the payment of capacity charges to IPPs, electricity in Pakistan has become the most expensive in the region. If the factory runs, the bill has to be paid, but even if the factory is closed, maximum demand indicator fixed charges have to be paid, which is an additional burden on the input cost. Due to the economic crisis at the international and local level, the production of the industry has already decreased considerably.

He said that even if the load capacity is low, additional fixed charges will be imposed which is incomprehensible. He said that in view of the current economic conditions, the industry needs immediate relief as it is not possible to deal with the economic challenges without its active role. He said that instead of taking such measures, the energy prices for the industry should be reduced, which will reduce the cost of production and Pakistani products will be able to compete better in the global market.

Former chairman All Pakistan Cotton Power Looms Association and former president FCCI Chaudhry Nawaz has expressed his surprise on the preparation of a 5-year plan under the supervision of a British economist for the sustainable development of the Pakistani economy. He said we have to formulate short-term and long-term policies according to the ground realities for the improvement of our economy and the desired results cannot be achieved unless all stakeholders are included in the consultation process.

He said that there is no problem in consulting foreign experts for the improvement of the economy, but unless the stakeholders from the private sector of our country are involved in this process, the desired results cannot be obtained.

He said that according to the plan, 6% annual economic growth and exports up to 60 billion dollars have been proposed by 2028. The government should circulate the draft to all chambers, associations and other organizations before final approval of the proposed plan, so that advice and suggestions can be obtained on its draft.

Copyright Business Recorder, 2024