South Punjab traders foresee production boost after power tariff cut

MULTAN: The South Punjab business community has expressed mixed reactions to the reduction in industrial power tariff; however, they termed it a positive sign, anticipating significant growth in industrial production. Some business representatives indicated they couldn’t fully comment due to a lack of clarity on the specific details of the power tariff reduction.

The Multan Dry Port Trust chairman, Khawaja Hussein Ahmed, lauded the government’s decision to reduce the industrial power tariff to Rs 7.41 per unit as a business-friendly step that would stimulate industrial activity and ease financial burdens. He believes this move could have a substantial positive impact on the country’s industries, potentially boosting productivity, economic growth, and exports. Ahmed stated that lower electricity costs can enhance industries’ competitiveness and profitability, encouraging increased production and investment. He observed that reduced electricity costs can translate into lower operational expenses for businesses, enabling them to reinvest in equipment, technology, and workforce training, ultimately leading to higher productivity.

Khawaja Hussein emphasized the importance of capitalizing on US President Trump’s retaliatory tariffs, highlighting a historic opportunity for Pakistan following Trump’s imposition of heavy tariffs on Vietnam and Bangladesh. He suggested Pakistan could now pursue a zero-duty FTA with the US, leveraging Pakistan’s cheap labour and reduced electricity prices. He urged the immediate dispatch of a negotiation team to the US.

Noting that Pakistan currently exports goods worth $3 billion to the US and imports $1.5 billion, Ahmed argued that a free trade agreement granting duty-free access on par with China could shield Pakistan from US retaliatory tariffs. He projected that such an agreement could see Pakistan’s imports from the US double to $3 billion and exports to the US potentially reach $6-7 billion, transforming Pakistan’s trade deficit into a strength. He also advocated for opening doors to Chinese industries within Pakistan’s export zones, asserting that Pakistan’s textile, leather, and footwear industries now have a unique chance to access global brands.

The Multan Chamber of Commerce and Industry (MCCI) has also welcomed the Government of Pakistan’s announcement to reduce the electricity price per unit for industries by Rs 7.41. The MCCI believes this decision will lower the cost of industrial production, thereby boosting the country’s economy and generating new employment opportunities. MCCI President Mian Bakhtawar Tanveer Sheikh commended the government’s move, stating that new electricity prices will alleviate the financial strain on industrialists and improve business activities, ultimately increasing exports and stabilizing the economy.

He further urged the government to provide more relief to the industrial sector to ensure the country’s industries remain on a development trajectory and continue to increase employment opportunities. Sheikh hoped for future beneficial steps for the business community and the country’s economy. Industrial and commercial circles have generally welcomed the government’s decision, considering it a positive step that will play a significant role in the development of the economy.