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lahore - The trade and industry on Friday severely criticised the caretaker government for making a huge increase of Rs5.82 in per unit price of electricity and termed it an anti business decision aimed at sabotaging the popularity of PML-N government.
They said that at a time when the business community was already paying high cost of doing business because of unavailability of gas and electricity, the decision is devastating. They said that the hefty increase in power prices would also adversely affect competitiveness of Pakistani merchandise that had already lost their due place in a number of global markets due to their high prices.
They said that in the international market the profit margin fluctuates between 0.5 per cent to 0.8 per cent, therefore after the recent increase there would hardly be any buyer for Pakistani goods.
They said that if the increase, under the fuel adjust surcharge, was necessary, then it should have been implemented in phases instead of making the huge increase in one go.
They opined that government move is bound to increase the incidence of electricity pilferage that already is 25 per cent of the 22 per cent line losses and eating up Rs 50-75 billion.
The LCCI President Farooq Iftikhar said that how the industry would remain competitive at such a high price of electricity which is one of the basic industrial raw materials.
We already have the highest tariff in our region as in India, the electricity tariff for industry is 10.5 cents, in Bangladesh 10.75 cents and in Sri Lanka it is again 10.75 cent whereas in Pakistan tariff is already 15 cents meaning that 45 percent higher as compared to the region. With this massive and unprecedented increase, we will have double the tariff of electricity what the regional countries are offering to their trade and industries leaving Pakistan totally uncompetitive and unviable in the international market place.
The country had already lost a number of international markets to China, Bangladesh and India due to high cost of doing business.
http://www.nation.com.pk/pakistan-n...riff-hike-aims-at-sabotaging-pml-n-popularity
They said that at a time when the business community was already paying high cost of doing business because of unavailability of gas and electricity, the decision is devastating. They said that the hefty increase in power prices would also adversely affect competitiveness of Pakistani merchandise that had already lost their due place in a number of global markets due to their high prices.
They said that in the international market the profit margin fluctuates between 0.5 per cent to 0.8 per cent, therefore after the recent increase there would hardly be any buyer for Pakistani goods.
They said that if the increase, under the fuel adjust surcharge, was necessary, then it should have been implemented in phases instead of making the huge increase in one go.
They opined that government move is bound to increase the incidence of electricity pilferage that already is 25 per cent of the 22 per cent line losses and eating up Rs 50-75 billion.
The LCCI President Farooq Iftikhar said that how the industry would remain competitive at such a high price of electricity which is one of the basic industrial raw materials.
We already have the highest tariff in our region as in India, the electricity tariff for industry is 10.5 cents, in Bangladesh 10.75 cents and in Sri Lanka it is again 10.75 cent whereas in Pakistan tariff is already 15 cents meaning that 45 percent higher as compared to the region. With this massive and unprecedented increase, we will have double the tariff of electricity what the regional countries are offering to their trade and industries leaving Pakistan totally uncompetitive and unviable in the international market place.
The country had already lost a number of international markets to China, Bangladesh and India due to high cost of doing business.
http://www.nation.com.pk/pakistan-n...riff-hike-aims-at-sabotaging-pml-n-popularity