LAHORE, May 17: The Lahore Chamber of Commerce and Industry has criticised another 16 per cent increase in power tariff and said it would badly affect economic and industrial activities in the country.
LCCI President Irfan Qaiser Sheikh said it was a futile exercise and would be of no service to the government until it made a plan to deal with inefficiencies in the power sector. He said that bulk of electricity was being produced through oil-run power generators in the country.
Besides controlling line losses and electricity theft, he said, the government would have to chalk out a plan to convert oil-based power plants to coal-based plants. India, he added, was producing more than 60 per cent of electricity through coal and only six per cent through furnace oil.
Mr Qaiser was of the opinion that the government decision was bound to increase incidents of electricity pilferage which was 25 per cent of the 22 per cent line losses and eating up Rs50-75 billion.
“We already have the highest tariff in the region. How can the industry remain competitive at such a high cost of electricity which is one of the basic industrial raw materials,” the LCCI chief said.
He said electricity tariff for industry was 10.5 cents in India, 10.75 cents in Bangladesh and 10.75 cents in Sri Lanka, but this in Pakistan was already 15 cents which was 45 per cent higher than these countries.
Mr Qaiser said: “With this massive and unprecedented increase, we will have double the tariff what the regional countries are offering to their trade and industries, leaving Pakistan uncompetitive and unviable in the international market.
“Pakistan has already lost a number of international markets to China, Bangladesh and India because of high cost of doing business and the decision to increase power tariff will make Pakistani goods more uncompetitive.”
The LCCI chief said the business community was unable to understand that instead of taking measures to control line losses and increase cheap power generation up to capacity, policies were being made to add to the miseries of businessmen.