KARACHI, Oct 10: Industry and business leaders said on Friday that the government decision to allow KESC to substantially enhance power tariff will result in large-scale closures of manufacturing units.
These leaders are unanimous in their views that the new tariff could not be absorbed by the industry and will turn all the five industrial estates of the city into ‘industrial graveyards’.
A joint meeting has been called on Saturday in the office of the Korangi Association of Trade and Industry (Kati) to chalk out future plans against the discriminatory decision of power tariff hike.
They said that if the government did not withdraw the tariff hike decision, the industry would have no choice than closing or shifting units to other areas. They feared that this would further speed up flight of capital from the country.
Sheikh Fazle Jalil, chairman Kati said that by no means the industry was going to accept these tariffs as it could not be absorbed at a time when the cost of production is going higher and higher on each day and the world market is also getting tough owing to global financial crisis.
The Kati chief said that the industry could not swallow such a steep rise in power tariffs ranging from 32 to 70 per cent and it was bound to collapse.
S M Muneer, former president FPCCI, told Dawn that looking at the situation it appeared that there was no use to handover the power utility company to the private sector, which failed to check line losses and power theft.
He apprehended if the government allowed the increase in power tariffs, as has been reported, the industry was bound to close down and this will result in large scale unemployment in the city.
Mr Muneer further said this will also badly affect the government revenue and country’s exports would decline on large scale shutdown of industry.
Idrees Gigi, chairman F B Area Association of Trade and Industry, termed the decision to be discriminatory against the city of Karachi. He said why the government was giving discriminatory treatment to the city, which generates over 56 per cent of national revenue.
He further said that industry operating under Wapda system was paying lesser power tariffs than those in Karachi. This decision is not only against the city but the entire nation because industrial workers from allover the country come to Karachi.
Mian Zahid Husain, former Kati chairman said that the main objective of handing over the KESC to the private sector was to bring efficiency and introduce good management but there is no progress on these lines. Instead, power theft up to 17 per cent and line losses up to 40 per cent are still there and the industry is being asked to foot the bill of these losses.
Noor Ahmed Khan, chairman North Karachi Association of Trade and Industry said already industrial environment was being destroyed by extremely poor law and order situation and rumours of all sorts and the high increase in power tariffs will completely aggravate the situation.
Mr Khan said how could the industry absorb such a steep rise in power tariffs when the prices of industrial inputs are rising on daily basis and the manufacturer was not sure what to quote to his buyer, who seeks delivery of goods three or six months from the date of booking orders.