LCCI voices concern over rising circular debt

The Lahore Chamber of Commerce and Industry has expressed grave concern over record circular debt and expressed and feared of dire consequences in the days to come if issue is not controlled. The LCCI President Malik Tahir Javaid commenting on the rising circular debt said that huge amount of circular debt would result in huge reduction in power generation that would hit all segment whether it is trade, industry, agriculture or masses.
He said that concerned departments have always chosen easy way to allow power distribution companies to charge from consumers heavy system losses. It caused huge damage to the trade and industry therefore business community will not accept this unjustified method or increase in power tariff anymore, he added. He also urged NEPRA not to facilitate and encourage the defaulters by writing-offs and putting whole burden on the shoulders of consumers.
Malik Javaid said that repeated increases in power tariff are not solution to power sector problems but the government would have to address inefficiencies in the system. NEPRA is continuously adding up a staggering amount as circular debt due to inefficiency in collection of electricity dues and its failure to stop power theft, he said. "These inefficiencies are actually an unjust tax on honest power consumers. The industrial sector as a whole pays its dues in-time and there is no line losses/theft in most of the industrial estates and industrial estates in Lahore are one example" he maintained.
He said that power sector planners should take cue from the efficient distribution companies (Discos) where line losses are at the lowest. The business community is shocked that instead of taking measures to control line losses and enhance cheap power generation up to capacity, policies were being evolved to add to the miseries of traders, he said. LCCI chief said unimpressive growth of exports sector is indeed an eye opener and a wake-up call for the policy makers. Pakistan has already lost a number of international markets and the proposed increase in power tariff would make local goods uncompetitive, he said.
He also demanded of the government to shift power generation from costly thermal means to cheap hydel resources. The high price of energy adversely affects the export competitiveness of country as it takes major share in the production cost. The business community will be much relieved if per unit price of electricity is brought down because that would make our products more competitive in international market, he added.