KARACHI: President Bin Qasim Association of Trade and Industry (BQATI), Abdul Rasheed Jan mohammad has appreciated the caretaker government’s efforts for industrial rehabilitation and development in the country and fixing of power tariff at 9 cents/kWh for industrial consumers.

He said the decision to set the electricity rate at 9 cents/kWh is seen as a positive step that is expected to lower production costs and reinstate industrial competitiveness in the global market.

He highlighted the anticipated benefits of this decision, including increased production, heightened power consumption, timely bill payments and a reduction in circular debt within the energy sector.

Abdul Rasheed Jan mohammad has stressed the urgency of rectifying power tariffs for industrial consumers, emphasizing the need for swift government action as prevailing situation has created a detrimental cycle and escalating power tariffs causing a reduction in consumption, subsequently leading to further tariff increases. This cycle poses a severe threat to Pakistan’s economic stability; therefore, it should be implemented immediately, he added.

President BQATI expressed optimism that this strategic decision would not only promote industrialization but also lead to a decrease in gas consumption, subsequently alleviating the burden of capacity charges and addressing the persistent issue of circular debt.

He drew attention to the challenges faced by the industrial sector, particularly in terms of export competitiveness and said that with electricity previously priced at 16 cents, industries struggled to compete with imports, resulting in a surge in imports and a concerning decline in exports.

Copyright Business Recorder, 2024