Echoing the collective concerns of Pakistan’s business, industry and trade community, Mr. Irfan Iqbal Sheikh, President of FPCCI, has termed the latest PKR. 7.5 / kWh hike in the electricity tariff as anti-business. We have already become uncompetitive vis-à-vis regional and sub-regional countries due to the grossly unfavourable cost of doing business in the country, and he added that we cannot absorb the added burden.
Mr Irfan Iqbal Sheikh explained that businesses were already paying close to PKR. 60 / kWh – When accounted for all billing components, i.e., base tariff, surcharges, sales tax, income tax, excise duty, fuel adjustment charges (FAC) and fixed charges, this massive increase will halt the business, industrial and commercial activities.
Mr Irfan Iqbal Sheikh maintained that rather than increasing the regularly paying electricity consumers, the government needs to curb electricity theft and control line losses as it will plug leakages from the system and generate revenues for the government.
He added that, as President of the apex body, he is under tremendous pressure from all 250 trade bodies, associations, chambers and sectors to negotiate with the government on their behalf and persuade the withdrawal of the latest hike. I hope that the better sense will prevail, he added.
Mr Irfan Iqbal Sheikh explained that the cost of electricity results in a multiplier effect by increasing the cost of doing business at every stage – from production to delivery to the end-consumer. He questioned that the IMF itself has recently admitted that Pakistan did not receive adequate aid in the aftermath of the most devastating floods of its history; why is the government still unable to present its case?
Mr Irfan Iqbal Sheikh added that the business community is the country’s most peace-loving and law-abiding community. They run the economy and the nation by generating taxes, employment and economic growth, but they are being incessantly mistreated through the most untimely, regressive and anti-business measures.
Mr. Irfan Iqbal Sheikh said that the Prime Minister and Finance Minister need to take stock of the brewing frustration immediately; defaults on electricity bills; impending bankruptcies, and un-fulfilment of the export orders – and start the much-needed consultative process with the business community.