KARACHI, July 23: Business and industry on Tuesday welcomed President Pervez Musharraf’s suo moto action to put on hold the recent increase in power tariff in the best national interest.

In a statement issued here, All Pakistan Textile Mills Association (Aptma) chairman Nadeem Maqbool lauded the President’s personal intervention to suspend the 40-paisa per unit average rise in electricity tariff recently allowed to Wapda by National Electricity and Power Regulatory Authority (Nepra).

He said the cost of electricity in textile industry was critical to the viability of the industry and its exports as it comprised over 31 per cent of direct cost of production.

Nadeem Maqbool said if the proposed tariff had been implemented the textile industry’s viability would have been grossly disturbed and its exports would have become uncompetitive in the world market.

Amjad Rafi, former president, Karachi Chamber of Commerce and Industry (KCCI), while appreciating the President’s action said that periodic hike in power rates was of great concern.

He said the Wapda chairman in a press statement on Monday acknowledged that raise in electricity tariff would have negative impact on the economy and increase pilferage of electricity.

“It is a poor reflection on the decision, as hike in power tariff is being allowed knowingly that it will have devastating impact on industrial growth and economy at large, which is already in recession,” he remarked.

He lamented that annual losses suffered by power utilities come to almost 1.5 per cent of GDP, which is alarming and needs immediate corrective measures on a lasting basis.

Reasons cited by the Wapda chief such as non-payment of Rs24 billion by the government organizations and rise in gas and furnace oil prices by 105 per cent and 133 per cent, respectively, during the last three years did not warrant that crushing blows be inflicted on the private sector time and again, he asserted.