FAISALBAD: Chairman All Pakistan Cotton Power Looms Association Rana Azhar Waqar said that 15 percent increase in electricity tariffs would impose additional burden of billions of rupees on the people so this decision should be reversed. This decision will hurt economic activity and investor confidence. Instead of making electricity more expensive, efforts should have been made to reduce electricity theft and increase recovery.

Talking to the business community, Rana Azhar Waqar said that the condition of the people and the economy was not such that they could afford an increase of Rs 1.95 in the price of electricity as it would increase inflation by 2% while affecting industry and agriculture. The decision on production and exports will impose an additional burden of Rs 200 billion on consumers, in addition to the burden of sales tax, fuel adjustment and quarterly adjustment.

Consumers who spent 50 units per month had to pay a monthly bill of Rs 100, which will now increase to Rs 197.50. People who use 100 units every month will have to pay Rs 774 instead of Rs 579. Those using 200 units will have to pay Rs 2012 instead of Rs 1622 per month. People who use 300 units every month will have to pay a bill of Rs 3645 instead of Rs 3060. The decision will have a greater impact on the poor as their electricity bills will double, adding to their woes as they are already plagued by unemployment and rising food prices.

He further said that the business community was waiting for the good news of reduction in electricity rates and record revolving credit in case of successful negotiations with IPPs but their expectations have been dashed by dropping an electric bomb on them.—PR

Copyright Business Recorder, 2021