The recent increase in electricity rates has sparked strong condemnation from leaders in the business community, who are now raising alarm bells about the potential dire consequences for industries and the economy as a whole.
Farazur Rehman, President of the Korangi Association of Trade and Industry (KATI), took a firm stance against the frequent surge in electricity prices and demanded immediate action to offer more affordable electricity alternatives.
The overall rise of 34% in the basic tariff, coupled with the regular upward adjustments in electricity rates, has triggered widespread concerns across various sectors of the economy.
Rehman voiced serious reservations about the adverse impact of these increases on industries and businesses. He pointed out that the escalating electricity prices would lead to significant repercussions for industrialists, service sectors, and SMEs, especially as their incomes have not kept pace with the soaring electricity costs.
Many industrialists fear that the surging production expenses will hinder their competitiveness in the global markets, potentially leading to a wave of industrial shutdowns.
The United Business Group (UBG), representing a significant part of the nation’s economic foundation, also expressed deep apprehension and anxiety regarding the exorbitant increase in electricity tariffs. Zubair Tufail, President of UBG, stressed that the surge in electric tariffs will have a devastating effect on SMEs and cottage industries.
Instead of burdening the already struggling masses, the UBG proposed that the government should focus on discontinuing the provision of free electricity, gas, and petrol to privileged classes.
Rehman advocated for an alternative approach to alleviate the burden on the public and industry. He suggested that the government should prioritize providing cheap electricity to mitigate the strain on the economy and prevent further social repercussions.
One proposed solution is to offer loans at single-digit interest rates to facilitate the adoption of solar systems, promoting sustainable and renewable energy sources.?