Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain said on Friday that the expense of gas and electricity is preventing local and foreign investment. He said that without inexpensive energy, exports and production cannot increase. Hence, taxes will remain unsatisfactory, and unemployment will increase. Mian Zahid Hussain said that SIFC should try to lower gas and energy rates to attract investment.

Speaking to the business community, the veteran business leader said that people and investors are worried about the ever-increasing electricity, gas, and oil prices. Energy prices in Pakistan are the highest compared to other countries in the region, which is hampering exports, he said.

The business leader observed that reducing electricity and gas prices is possible, provided line losses, theft, and defaults are eliminated. Instead of capacity payments, full utilisation of electricity production should be ensured. He demanded that SIFC take note of this situation and take steps to lure investment, increasing employment, income, and revenue.

Pakistan’s hands are tied due to the IMF’s deal, and apparently, it is difficult to give relief to the people and the business community, but some way should be found for it; otherwise, investors will prefer neighbouring countries instead of Pakistan. Why would investors prefer Pakistan over neighbouring countries with cheaper energy and better overall conditions? He questioned.

Mian Zahid Hussain further said that electricity rates in India, Bangladesh, and Vietnam are almost half of those in Pakistan, making it difficult for our exporters to compete with these countries in the global market.

He further said that the industrial sector is already drowning in the mire of problems, but it is forced to pay Rs 300 billion extra in power bills so that the masses can be subsidised.

Mian Zahid Hussain further said that due to the high cost of electricity, its usage is decreasing, which is a bad omen for the economy, while the theft of electricity is increasing, which has to be borne by honest consumers.

Making electricity cheaper for the industrial sector will increase production, exports, and employment while increasing its use will also reduce circular credit. Still, the current policy is the opposite, he observed.

The textile industry can export two billion dollars per month, but the energy sector is blocking its way and is constantly weakening it, which should be taken into immediate notice and necessary steps should be taken, he demanded.