KARACHI, Feb 28: The Pakistan Tanners Association (PTA) has expressed concern over government decision to increase electricity tariff by 10 per cent for all categories of consumers.

While criticising the decision, the PTA chairman, S M Naseem, said 10 per cent hike in power tariff would harm domestic, industrial and domestic consumers.

He said exports of leather sector industry are already on constant decline during the first half of the current fiscal as compared to the same period last year.

The hurriedly taken decision to increase electricity tariff will further dampen the situation as it will augment cost of production which will render leather and leather products uncompetitive in the world market.

Mr Naseem said 10 per cent reduction allowed simultaneously in the prices of gas for commercial consumers and 7.82 per cent for domestic users was not enough because the rate of gas was already on the higher side for the last couple of years.

The PTA chairman appealed to the prime minister to review the decision and reduce the electricity tariff at least by 50 per cent, particularly for export-oriented industry.

In case the government could not do so, it should announce some incentives or subsidy to compensate leather industry and enable it to compete in the world market.

He further said that the government, instead of taking such measures should provide due relief to exporters, particularly leather sector, who are earning foreign exchange for the country.

The PTA chief said that the decline in leather and leather goods could be verified from the reports released by the Federal Bureau of Statistics.