Business groups want IPP contracts cancelled

MULTAN: The Multan Chamber of Commerce and Industry (MCCI), along with the chambers of Dera Ghazi Khan, Khanewal, Jhang, Rahimyar Khan, Bahawalpur and Vehari as well as the All Pakistan Cotton Manufacturers Association, All Pakistan Bedsheet and Upholstery Manufacturers Association, All Pakistan Oil Mills Association, Pakistan Crops Protection Association, Solvent Extractors Association, Oil Mills Association and Chamber of Small Traders and Small Industry have demanded the government reevaluate the Independent Power Producers (IPPs) and conduct audits.

They also called for an investigation into the assets and the immediate cancellation of their contracts.

At a joint press conference here on Saturday, MCCI President Mian Rashid Iqbal said it has become impossible to do business in the country after the federal budget.

The business conditions are deteriorating day by day due to political instability. The markup rate is at an all-time high of 20.5 per cent, while the inflation rate has reached 11 per cent.

The markup rate should be reduced to 12 per cent. The introduction of new taxes in the federal budget is a cause of concern for the business community, he said. Going further, Rashid said that SRO 350 is unworkable and is affecting the supply chain.

The withholding tax rate has been increased, leading to new problems. He pointed out that the government’s initiatives and agreements with IPPs have resulted in unsustainable electricity rates, making it difficult for domestic, commercial, and industrial consumers to pay their electricity bills.

Compared to Pakistan, electricity is still cheaper in all neighbouring countries, and the industry is also flourishing there. Due to the high cost of electricity, industries in the country are being forced to shut down.