Industrial units facing closure after 57pc raise in power tariff

Several industrial units have been closed after 57 per cent increase is electricity tariff in August. Federal government is again planning to increase power tariff by 30 percent. The decision may result into disaster and many more units will be closed causing serious unemployment in the country, industry representatives said on Sunday.
“The present increase in electricity tariff will force industrialists to shut down their operations. Many people have stopped their industrial activity and have started real estate business. Some of the units have shifted their operations to other countries. The trend is disastrous and may cause serious unemployment in the country.” The so-called business friendly government has focused all its abilities for collection of revenue and no attention is paid for industrial growth and to boost exports. This was stated by the Chairman of Pakistan Tanners Association (Central) Agha Saiddain.
He further added that present government has failed to introduce export-friendly policies and this may cause serious setback to the country as value of Rupee has already slipped by more than 8.5 per cent in last three months. Due to present poor policies the balance of payments would be badly disturbed and country may need more borrowings in future years. There is every possibility that we as a country will be caught in serious debt trap and unending vicious circle.
Agha said it is beyond our understanding that how policy makers can think that industry can survive even after so much increase in electricity bills. He said that most of the industry is either running in loss or operating at a very thin margin.
He further added that government may set priorities and engage think tanks to suggest prudent policies in the best interest of country at long run.
Most of the present policies are short sighted and pregnant with serious repercussions. The previous government had appointed the Senior Federal Minister for Commerce but the present government has given additional charge to the Minister of State. This shows the difference of vision and mind set. He said for last few months TDAP is without its CEO and many matters are pending due to this vacant position. He urged government to immediately withdraw decision of increase in electricity tariff to avoid nationwide strike as suggested by many trade bodies and chambers all over the country.
He said that law and order is a major cause of decline in local and foreign investment and if the government fails to respond to private sector’s call, the economy will continue to slide ultimately resulting in closure of industry and trade. He said that the government should facilitate the exporters and implement all trade facilitations in letter and spirit enshrined in trade policies. He said that the economic realities show that the country cannot sustain a high and growing trade deficit therefore the trade development should be enhanced through close coordination all major with trade and industrial bodies.