LAHORE, May 18: The business community has criticised the caretaker government for a massive increase of Rs5.82 per unit in electricity tariff.

In separate statements on Saturday, the Pakistan Industrial and Traders Association Front (PIAF) and the Lahore Chamber of Commerce and Industry (LCCI) termed the increase an anti-industry and anti-masses move.

PIAF Chairman Malik Tahir Javed said electricity prices in Pakistan were already higher than other countries of the region, and the new hike would push the crisis-hit industrial sector to the wall.

“How Pakistani merchandise will be able to win buyers in the international market when their prices will be higher than the same quality goods of other countries?” he said.

The PIAF chairman said according to reports more than 40 per cent electricity was being stolen, but instead of controlling the theft and line losses, the authorities were busy in further increasing its tariff in spite of the proven fact that the raise in the tariff always leads to increase in power theft.

He said the flight of capital had intensified in the recent years only because of flawed government policies, especially relating to energy and infrastructure.

He said massive loadshedding had crippled the industrial activities, thousands of industrial units had closed down or relocated while millions of industrial workers had lost their jobs but instead of initiating any mega power projects, the government remained busy in increasing power tariff.

He said the increase would badly affect the agriculture sector which was backbone of the economy and feeding more than 70 per cent of the population.

Mr Javed urged the caretaker government to immediately withdraw recent increase in electricity tariff and avoid making such destructive decisions.

Lahore Chamber of Commerce and Industry President Farooq Iftikhar said the hefty increase in power prices would adversely affect competitiveness of Pakistani merchandise that had already lost their due place in a number of global markets due to high prices.

“In the international market, the profit margin fluctuates between 0.5 per cent and 0.8 per cent and after the recent increase there will hardly be any buyer for Pakistani goods. If the increase under the fuel adjustment surcharge was inevitable, it should have been implemented in phases instead of in one go,” he said.