Islamabad : Muhammad Ahmed Waheed, President, Islamabad Chamber of Commerce & Industry has called upon the government to reduce power tariff in proportionate to the cut made oil prices that would bring down cost of doing business and help in reviving falling exports.
He said that government had reduced prices of petroleum products in the wake of fall in oil prices in international market that was a laudable decision while there are indications that OGRA may propose further cut in the prices of petroleum products. However, he urged that government should also make a proportionate cut in power tariffs that would reduce manufacturing cost and make our exports more competitive in regional/international market.
Muhammad Ahmed Waheed said that COVID-19 pandemic has caused unprecedented losses to business and industrial activities in the country due to which our fragile economy is struggling. He said that the only best solution to overcome economic challenges is to give boost to industrial activities. Since the cost of production has a major component of electricity cost, lowering power tariff would bring down production cost leading to better revival of business activities.
ICCI President said that coronavirus has badly hit the businesses across the world due to which major importers/customers of our products were demanding discounts. However, it was not viable for exporters to give them discount without reduction in production cost and this situation could lead to cancellation of many export orders. To cope with such challenges, Pakistan should adopt two-pronged strategy vis reduce manufacturing cost and increase volume of exports. He said that the best way to enhance volume of exports is to make exportable products cheaper and more competitive while could be made possible by reducing power tariff.
Muhammad Ahmed Waheed further said that share of hydropower increases during summer season due to increased inflow of water that also provides good opportunity to the policymakers to make a decision for cutting power tariff. He said that reduced power tariff would bring multiple benefits to the economy as it would bring down production cost, make manufactured products cheaper, improve exports volume, reduce inflation and accelerate the pace of economic activities leading to early revival of overall economy.