Industries to close down on their own due to unabsorbable tariffs, says Zubair Motiwala
\nKARACHI
\nThe Leadership of Businessmen Group (BMG) and Karachi Chamber of Commerce of Industry (KCCI), while totally rejecting the unprecedented 80 percent hike in electricity tariff, stated that this unbearable upsurge in electricity tariff has created a miserable situation not only for the public but also for the business & industrial community wherein many businesses and industrial units will close down on their own as it was impossible to absorb such an extraordinary raise in electricity tariffs.
\nAddressing a press conference here on Monday, Chairman BMG Zubair Motiwala and President KCCI Muhammad Idrees demanded that keeping in view the gravity of situation and likely repercussions on the already ailing economy, the government must immediately withdraw hike in electricity tariff, Fuel Adjustment Charges (FAC) and reintroduction\/ increase in Fixed Charges so that the industries could survive in an extremely competitive environment while the hardships being faced by common man could also be reduced in the ongoing era of inflation.
\nGeneral Secretary BMG AQ Khalil, Senior Vice President Abdul Rehman Naqi, Former President Younus Muhammad Bashir, prominent members of the Business Community, representatives of Industrial Town Associations and sector-specific trade associations were also present at the press conference.
\nChairman BMG stated that it was a matter of grave concerns that the base tariff has been raised by Rs9.8972 per unit, which has jacked up per unit cost from Rs19 to around Rs30 per unit, indicating an unprecedented hike of 50 percent.
\n\u201cThis is not the end of the story as this increased electricity base tariff of Rs30 per unit will obviously be subjected to 17 percent Sales Tax, Excise Duty and Income Tax as well and when all these components are combined, an unbearable minimum impact in between 65 percent to 80 percent, would appear in the electricity bills\u201d, he noted, adding that if electricity tariffs continue to go up at same pace, the per unit tariff may reach somewhere in between Rs55 to Rs65 in the next couple of months.
\nTouching upon another important aspect which has raised the cost of doing business for industries, he informed that variant tariffs have once again been restored for the industries under the policy of Peak and Off-Peak Hours which was suspended in the past and a uniform tariff was applicable throughout the day so that the industries could carry on their production at full capacity without any interruption.
\n\u201cThe restoration of peak and off-peak hours is going to create a very difficult situation for the industries as they will either have to curtail their production or suspend operations during peak hours and then reengage labour for resumption of pending work during the remaining non-peak hours which happens nowhere around the world but only in Pakistan where such mess usually surfaces due to poor decisions and policymaking by NEPRA which never listens to consumers and only fully facilitates DISCOs.
\nHe appealed the Prime Minister to look into NEPRA\u2019s matters as many decisions taken by NEPRA were purely against the consumers and in recent history, the regulator has never favored the consumers.
\nAs consumers\u2019 point of view was never being taken seriously at the so-called public hearing, NEPRA rules must be redefined and a consumer representative must also be included in NEPRA\u2019s penal for Public Hearings.
\nHe further noted that the industries of Karachi were paying at least Rs10 more than what was being charged from the industries in Peshawar which was a sheer discrimination and clearly gives an impression that policies were being devised in such a manner that the industries in Karachi close down units on their own and move to somewhere else.
\nExpressing deep concerns over restoration and increase in Fixed Charges, Zubair Motiwala stated that this was unacceptable as it would further increase the cost of doing business because fixed charges were applicable as per load on operational and inoperative industries who, instead of being encouraged to reactivate operations, will be compelled to stay closed.
\n\u201cIt is an imprudent move which was neither in favour of businesses nor the economy as it would refrain the industrialists from reactivating their closed units. Hence, the government must withdraw Fixed Charges to encourage industrialization and ensure creation of maximum employment opportunities.<\/p>\n","protected":false},"excerpt":{"rendered":"
Industries to close down on their own due to unabsorbable tariffs, says Zubair Motiwala KARACHI The Leadership of Businessmen Group (BMG) and Karachi Chamber of Commerce of Industry (KCCI), while totally rejecting the unprecedented 80 percent hike in electricity tariff, stated that this unbearable upsurge in electricity tariff has created a miserable situation not only […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-280327","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n