Industrialists and traders on Tuesday expressed concerns over increase of 58 paisa per unit in electricity tariff and Rs 3.69 per mmcfd increase in gas tariff terming it an illogical decision. High cost of power and gas would increase the overall cost of production for industries and locally produced goods would become out of reach of general public.
They added that the new increase in electricity and gas tariff would also increase the cost of exportable items. The business community has strongly criticised the government's decision to increase electricity and gas tariff and termed it an anti-people and anti-industry decision. "People are committing suicides because of poverty and unemployment and implementation of this brutal decision would further increase suicide rate in the country."
Lashing out at Nepra and Ogra's decision to allow an increase, they said that the country was passing through a worst crisis of the century and this raise was not acceptable in any situation. The raise would further deepen power and gas crisis in the country as abrupt sequel of enhancement in power tariff for last several months has brought the industry on the verge of closure owing to exorbitant cost of doing business.
Industrialists said that energy was a main source of development. Electricity and gas prices were correlated to the economic growth and increase in electricity and gas tariff would destroy everything. They said that persistent hikes in energy prices were making the Pakistani exports uncompetitive due to which poverty and unemployment was increasing in the country. They said that government should alter its brutal policies otherwise a bloody revolution was not very far. Power theft in residential areas may also increase, they feared.
Chairman Site Association of Industry (SAI), Wahab Lakhani said that the industrialists were totally confused and did not know in which direction they were heading. He termed the recent increase in power and gas tariffs as nuclear bomb attack on industry. "I fear that industry will not survive in present scenario where utility tariffs are increasing frequently with small intervals. The government is going to impose Reformed General Sales Tax (RGST) which is death warrant for the industry."
Chairman Federal B Area Association of Trade and Industry (FBASTI), Mohammad Irfan emphasised the need of dialogues with business community before taking any decision to increase utility tariffs. He said that in January new export orders would start coming but due to higher prices of Pakistani products they might lose orders. He added that if present trend of increasing utility tariffs and imposing new taxes frequently continued it might force industrialists to close down their units for good.
Chairman, Consumer Association of Pakistan, Kokab Iqbal advised government not to impose any new tax or increase tax and not to allow increase in gas and power tariff. He suggested that there should be no increase in gas and power tariff for those living in houses of 240sq yards or less.
Similarly, there should be no increase in power tariff for small shopkeepers. All taxes and utility tariffs should be increased for big houses, industries and shopkeepers only. He said that there was no issue of loadshedding in the city if KESC utilised its full capacity to generate power. The association would soon file a petition against KESC for not utilising its full capacity for power generation, he added.