President Pakistan Businessmen and Intellectuals Forum (PBIF), President All Karachi Industrial Alliance (AKIA), Senior Vice Chairman of the Businessmen Panel of FPCCI and former provincial minister, Mian Zahid Hussain on Friday termed seventy percent hike in power tariff for the export sector as shocking.
The decision will hit the export sector and erode competitiveness in the international market which will lead to reduced exports and less investment taking a toll on the economy, he said.
Power tariff for the export sector should be same as the competing countries to provide a level playing field to our export sector, he added
Talking to the business community, the veteran business leader said that the export sector has braved political and economic instability, energy crisis, exchange rate problems, delayed refunds and withdrawal of zero-rating and other problems but it may not be able to withstand the recent decision.
The former minister noted that the export sector was paying 7 cents /KWh since January 2019 but now the tariff has been increased by 70 percent to 13 cents.
The 70 percent hike will be applicable since January 2019 which is to frustrate the export sector as the many deals have been closed while new orders have been booked keeping old tariff in mind.
The move will increase the cost of doing business for textile sector by 24 percent while will leave all the initiatives to boost exports useless and the industry may fail to honor its commitments.
He said that investors had planned to bolster the textile exports to 50 billion dollars by 2030 by investing 30 billion dollars in expansion, technology up-gradation, modernization and other initiatives which was to provide jobs to millions but now the plays may get rolled back. He said that frequent changes in important policies and critical decisions result in instability which damages the investment climate.