KARACHI: Johar Qandhari, President of the Korangi Association of Trade and Industry (KATI), has pointed out that the recent increases in electricity and gas charges have made it financially unfeasible for industries to continue production and business activities.

He demanded that the government reduce electricity rates to 9 cents per kilowatt and lower interest rates to 12 percent. These measures, he argued, would stimulate economic growth, boost exports, attract investment, and create employment opportunities.

Qandhari also urged the government to purchase power from cheaper, low-cost sources to reduce the burden of capacity charges on the public. He criticized the contracts with Independent Power Producers (IPPs), which he said have severely hampered the national economy.

Providing electricity at 9 cents per kilowatt could lead to a significant increase in exports (estimated at US$ 6 billion), additional demand on the grid (300 MW), higher revenue (Rs.500 billion), and reduced debt (Rs.240 billion). He stressed the importance of consulting with stakeholders to address their grievances and create a business-friendly environment that would enhance Pakistan’s competitiveness in the global market.

Qandhari also called for a reduction in interest rates, noting that the current inflation rate is 12 percent. President KATI expressed confidence that the business community could play a significant role in tax generation if given the necessary support and opportunities.

Copyright Business Recorder, 2024