ISLAMABAD, Nov 28: The government is considering rationalising power tariff for the industrial sector after taking necessary measures, including reducing line losses and putting thermal power generation in full gear.

“ The government is doing its best to rationalise power tariff after taking necessary measures whereby Pepco and Wapda have to reduce line losses, and exercise necessary savings, where possible, from generation to production stages,” Adviser to the prime minister Shaukat Tarin said while talking to a delegation of FPCCI here on Friday. The FPCCI team led by its president Sheikh Tanveer Ahmed held a meeting with the adviser to apprise him of the electricity tariff related problems of the private businesses that posed impediments in overall industrial growth.

The delegation informed the adviser of the current economic crisis and prevailing recession in steel, oil, palm oil, cement and other industry specific production sectors because of increase in power tariff.

The delegation drew adviser’s attention to the downslide in international market oil prices adding that its benefit in reduced power tariff has not been passed onto commercial and industrial users.

Mr Tarin assured FPCCI that the government was reducing its reliance on central bank’s borrowings, considering furnace oil pricing for power units, initiating a fiscal policy framework whereby the FPCCI’s existing economic issues are fully addressed by FBR, SBP, TCP and other government organisations.

The government would help restructure all state-owned business activities, incorporate private sector in boosting it and bridge the gap between public and private sector partnership, the adviser added.

The problem of power outages during the peak winter season may be addressed in a manner that industrial activity in all sectors does not suffer, the delegation said adding instead, it works in full gear, increases its yield and finally pays revenue to the government through its structured taxation system.

It was agreed in the meeting that under-invoicing and over-invoicing both need to be checked and industry as corporate sector may adhere to the local and international laws.

Mr Tarin informed the FPCCI that Rs227 billion deficits had to be absorbed by the government during recent past, when international oil prices registered upward trend, through internal re-adjustments.

The FPCCI delegation said the rise in banks interest rate plus enhancement in government’s revenue targets (Rs1.3 trillion) has added to the production cost of the industry. The FPCCI being the apex trade body of the country may always be taken into confidence in economic decision-making process.