ISLAMABAD: Islamabad Chamber of Commerce and Industry has welcomed the move of Prime Minister Muhammad Nawaz Sharif to announce a cut of Rs.3 in per unit tariff of electricity for industrial consumers at the occasion of 39th Annual Export Awards Distribution Ceremony at Federation of Pakistan Chambers of Commerce and Industry which would be applicable from 1st January 2016 and termed it a highly positive development as it would provide good relief to industrial sector, bring down production cost and help in improving exports of the country.
Atif Ikram Sheikh, President, Islamabad Chamber of Commerce and Industry said that according to a study power tariffs for industry in Pakistan were more than 10 US Cents per KWh as compared to 5.4 in Bangladesh, 9.3 in Nepal and 9.1 in Sri Lanka which showed that cost of electricity for industry in Pakistan was almost highest in the region and there was a dire need to bring it down make our industry competitive.
He said Pakistan was generating about 35 percent electricity through furnace oil while price of crude oil in international market has come down to below $37 per barrel. He said it was a good opportunity for the government to provide sufficient relief to business & industry as well as the common man by announcing proportionate cut in the prices of POL products so that people could avail full benefit of reduced international oil prices.
ICCI President said that Pakistan has the potential to generate 50GW hydro electricity while it has so far exploited only around 13% of hydropower potential and stressed that government should make utmost efforts for maximum exploitation of hydropower potential which was the cheapest source of energy in the country.
He said government should also focus on controlling high power transmission and distribution losses which were over 17% in Pakistan as compared to 2% in Singapore, 3% in South Korea, 6% in China & Malaysia, 9% in Sri Lanka & Indonesia and 12% in Bangladesh. He said making power tariffs competitive would yield multiple benefits for the country as it would reduce cost of doing business, enhance industrial productivity, boost business activities and exports, create more jobs, improve tax revenue and contribute positively to strengthening the economy.
