FAISALABAD: Anti-export steps must be avoided to ensure growth of the industrial sector on solid and sustained foundations, said Muhammad Amjad Khwaja, Senior Vice Chairman Pakistan Hosiery Manufacturers & Exporters Association (PHMA).

Commenting on the recent decisions of the government regarding electricity and gas, he said that after enhancing the basic rates of electricity, the duration of peak hours have also been extended for two hours. “It would directly hit the export sector,” he said, adding that instead of checking power pilferage, the government has adopted an easy way to generate funds by enhancing its rates. He said that such steps would further complicate the distortions in the economic system. He further said it would increase the circular debt in the energy sector instead of curtailing it.

He said that after the receipt of the first tranche of IMF the depreciation of PKR had been stopped for a temporary phase as the macroeconomic indicators were very discouraging. He said “we could not improve the economy without correcting these distortions and anomalies.” He also expressed concern that the government was going to further enhance the rates of gas which would also have a negative impact on the industrial sector.

Muhammad Amjad Khawaja said the cause of increase in electricity tariff was actually the uninterrupted power pilferage by the influential consumers. He said that governments continued to cover up that theft by tagging it as a political economy for their own vested interest. He said political governments had their own priorities but the caretaker government must take that bold step to hit hard the power pilferage which had become a continuous threat for the national economy. He said “if caretaker successfully handled this issue in addition to conducting the fair and free election, it would give an immediate relief to the industrial sector as well as the general public.”

He said that any government supporting power pilferage would have to face the public wrath as they would not vote them to power. He demanded of the government that it should immediately withdraw the enhanced electricity rates for the industrial sector and exempt it from the menace of peak hours as per the earlier decision of Supreme Court of Pakistan.

Copyright Business Recorder, 2023