The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has demanded of the government to withdraw increase in Karachi Electric Supply Company (KESC) power tariff. The demand was made during an emergency meeting held at Federation House to discuss abrupt and unprecedented increase in KESC tariff and to decide future line of action.
It was also demanded that President and Prime Minister should give time to the representatives of business community to discuss power tariff and other economic issues.
Briefing newsmen about decisions made during the meeting, Vice President FPCCI, Zubair Tufail said that the federation has endorsed the decision made during the meeting of Korangi Association of Trade and Industry (Kati) that all industrial units will not pay the extra amount due to increase in power tariff. Industrialist will deposit their bills along with pay order in the name of KESC based on old tariff with their respective association. The association will send the bills and pay orders to KESC.
He said that it was also decided that the government must induct a representative of FPCCI in Oil and Gas Regulatory Authority (Ogra) and National Power Regulatory Authority (Nepra).
He said that it was demanded that government should provide copy of KESC's privatisation agreement and its re-sale agreement to FPCCI. He said that FPCCI also demand of the government to reduce petrol, diesel and furnace oil prices by at least Rs 12 per litre.
Zubair Tufal said that KESC tariff has been increased from 30 percent to 70 percent for different categories of consumers. While for industrial consumers increase ranges from 40 to 50 percent.
He said that in current economic crises and prevailing recession, prices of steel, oil, palm oil, cement and other products are declining whereas in Pakistan they are on rise. In these condition local industries cannot absorb increase in power tariff and if this increase in tariff is implemented, industries will become unviable.
He recalled that during a meeting with government last week, it was decided that government will reduce oil prices by Rs 5 per litre but it was not done.
The vice president said that at the time of privatisation of KESC it was announced that new management will invest 400 million dollars to improve its working and generation but it was also not done.
Speaking on the occasion, former president of FPCCI and leader of business community, S.M. Munir said that government increases power tariff whenever oil prices increase in international market. Now this time power tariff has been increased though oil prices decreased from 170 dollars to 70 dollars per barrel.
Criticising KESC's efficiency, he said that as power tariff increases, unannounced load shedding also increase and in last few days it increased tremendously.
He said that the President and Prime Minister should give time to a delegation of FPCCI to discuss crucial economic and electric power issues. Patron-in-chief of North Karachi Association of Trade and Industry (Nkati), Moiz Khan said that at the time of KESC privatisation it was made public that KESC tariff will not be increased up to 2012.
Chairman, Federal 'B' Area Association of Trade and Industry (FBAATI) Idrees Gigi demanded that power rates throughout the country should be same. Gas and oil prices are same in the country, he pointed out.
Saboor Ahmed Khan of KCCI suggested that the government should prepare a roadmap for power development. He also suggested that an independent body should conduct cost audit of KESC. He also suggested that the government must withdraw 16 percent sales tax imposed on electricity bills. Chairman, Korangi Association of Trade and Industry (Kati), Shaikh Fazl-e-Jalil said that Korangi Industrial Area comprised of 4,500 industrial units, out of them 40 percent industries have already gone out of production owing to high cost of doing business. He said that there is around 37 percent disparity between KESC and Wapda tariff and demanded that energy prices should be same throughout the country.
Mian Zahid Hussain said that the government increased around 151 percent in fuel adjustment charges, which in unjustified as oil prices declining in international market.