KARACHI: Patron-in-Chief of the United Business Group (UBG) SM Tanveer has called on the government to swiftly implement a lower electricity tariff of Rs26 per kilowatt-hour (kWh) to support industries struggling with high energy costs.
In a statement on Tuesday, he urged the prime minister, federal energy minister, and the Special Investment Facilitation Committee (SIFC) to announce the reduction without delay, following the government’s crackdown on independent power producers (IPPs).
“The tariff has already been reduced from Rs46/kWh to Rs34/kWh, and the industry expects a further cut to Rs26/kWh to sustain productivity,” Tanveer said. He noted that the government has terminated or revised tariffs for 27 IPP contracts and launched an inquiry into wind power projects, securing projected savings of Rs1.57 trillion. These savings, he stressed, should be immediately passed on to consumers. Rejecting concerns that the process is stalling, Tanveer said the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) remains in close contact with authorities and expects the new tariff by next month. He added that eliminating Rs1.1 trillion in capacity charges for power generation could push the tariff down to Rs11.50/kWh.
Pakistan’s industries are facing an “unprecedented crisis” due to exorbitant electricity rates, he warned, adding that failure to provide immediate relief could force widespread factory closures and job losses.