July 07, 2008	Monday	Rajab 3, 1429

ISLAMABAD, July 6: The Islamabad Chamber of Commerce and Industry (ICCI) has called for early establishment of the industrial estate in Sector I-17 of the federal capital.

“The government should facilitate the business community by early completion of the planned project,” ICCI President Mohammad Ijaz Abbasi said during a meeting with Federal Minister for Water and Power Raja Pervez Ashraf.

He said the growing energy crisis was badly affecting the business activity and contributing to rising inflation in the country.

Energy is a prerequisite for the development and growth of business and industry; and economy of Pakistan cannot progress without achieving self-sufficiency in energy, he added.

Mr Abbasi said Pakistan’s power shortage was over 4,000MW in peak hours, which was 40 per cent of the total demand.

He appreciated the efforts and initiatives of the present government for creating energy resources to meet the demand.

According to him, the Pakistan People’s Party (PPP) has come into the government with the mandate of the people to give them relief, whereas prices are going higher day by day due to hike of petroleum prices in the international market.

He said rising inflation was damaging the image of the PPP and emphasised for taking immediate measures to arrest the inflation.

Mr Abbasi said the recent decision of the government to make 68 per cent increase in gas price for captive power generation had badly hurt business and industrial sectors, particularly the textile industry that received the biggest blow.

The textile sector contributes more than 60 per cent to the total exports of Pakistan, but 68 per cent increase in gas rates for power generation will cripple the textile industry.

He said 70 to 80 per cent textile and other Large Scale Manufacturing Units had their own captive power generation units and the recent measure would force them to become ‘sick units’ besides creating a new unemployed workforce. Therefore, he stressed upon the government to take urgent remedial measures to rescue business and industry from disaster.

The ICCI chief said the government should not withdraw subsidy from electricity as it would not only raise electricity tariff for common man, but also have a negative impact on business and industry and make products uncompetitive in the international market.

Speaking on the occasion, the federal minister appreciated the role being played by the ICCI to strive for the interests of business and industry.

Mr Ashraf said he was one of the founding members of the ICCI and always advocated promotion of business activities in his capacity as a member.

He said his government was fully determined to facilitate the growth of business and industry in the country by adopting business-oriented and investment-friendly policies.

The minister said to overcome energy crisis, the government was planning to build more dams and also taking different initiative to reduce loadshedding by August 2008.

He also assured the ICCI president that he would take up the issue of 68 per cent rise in gas prices for captive power plants to seek a suitable solution to this problem.

Mr Ashraf said the government would make all important decisions by taking into confidence the business community so that the economy could grow rapidly.

He said the business community should also support the government in its efforts to cope with different economic challenges so that the nation could come out of this tough time with honour and dignity.