Muhammad Kamran Arbi, President of the SITE Association of Industry, has demanded that the government seriously investigate the exorbitant electricity tariffs for all categories of consumers, particularly export and general industries tariffs, and rationalise them, considering the actual cost per unit production.

In a statement, SAI President highlighted the significant impact of high energy tariffs on industrial competitiveness. He pointed out that the current situation is causing unrest among the business community and is making industries, both export-oriented and domestic, uncompetitive in the international markets.

“Pakistan simply has no competitive edge over any country, and it is positioned at the bottom where prices of industrial energy input are concerned. Industrial production requires energy security (particularly electricity, gas, and water), with utilities being competitively priced, of good quality, and consistent supply.”

Mr Arbi termed the current situation ‘alarming’. He stated that it calls for immediate government intervention, which must keep the wheels of industry moving, ensure that the labour force remains gainfully employed and that the country does not lose on export orders in the international market.

“Energy security is a basic requisite for industrial growth anywhere in the world. However, for us, it remains a pipedream! Moreover, the contracts signed with IPPs are the root cause of exorbitant power tariffs. The capacity payment has already crossed alarming levels without significantly increasing electricity consumption. This burden is being transferred to consumers who are already crumbling under the weight of high inflation and squeezing them further. The agreements signed with IPPs have now become a question of survival for the entire nation.” added the SAI President.

SAI President has appealed to the Prime Minister of Pakistan, the Finance Minister, and the Energy Minister to immediately investigate the matter and take urgent remedial measures in the nation’s best interest.