Governor Sindh Imran Ismail on Friday blamed the previous governments for 'expensive' electricity and LNG deals. He was addressing the inauguration ceremony of Plastic Products Show at the Expo Centre.
Governor said that previous governments made expensive deals with private power generation companies, as well as the purchase of LNG on higher prices which damaged the economy. These power plants will still have to be paid on take or pay basis.
"Costly electricity and LNG contracts enhanced debt burden for the nation besides causing problems for the PTI-led incumbent government," he said. FPCCI President Anjum Nisar, Pakistan Plastics Manufacturers Association (PPMA) Chairman Nabil Hashmi, PPMA patron Zakaria Usman and other prominent figures from the business community were also present at the occasion.
Prime Minister Imran Khan's economic team is working 24/7 to keep the economy in the right direction and to provide a conducive environment for the industrial sector and the business community, he added. Governor said that without the promotion of industries in the country, the economy cannot be built on a sustainable basis. Due to wrong decisions of past governments, Pakistan had to approach global institutions for loans, but now the situation is improving.
Imran Ismail said interest rates are also likely to decline, business community will soon hear the good news, but it will be gradual. Governor Sindh called on the business community to rely on government policies and measures for restoration of the economy and development and stability of Pakistan.
He congratulated the event organisers for holing plastic show despite unfavourable business conditions caused by the Coronavirus. "Since my childhood I have been hearing about planting a Naphtha cracker plant to facilitate the supply of basic raw materials in Pakistan, but this industry could not be done. I will discuss the issues with the Prime Minister," he added.
Anjum Nisar on this occasion said that electricity prices in Pakistan are twice comparing to the rest of the world. He said that in China electricity is provided at the price of 8 and 10 cents. The high cost of electricity is a problem for both the government and the industry to compete with global competitors.
President FPCCI also described high interest rates as a major problem for industries and said that reduction of interest rates was inevitable for establishing new industries in Pakistan. He said that the Prime Minister announced to maintain electricity tariffs for the five major export industries, but other industries continue to buy expensive electricity.
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