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High power, gas tariff 4,000 cottage industries closed - Naveed Yaseen - 09-16-2008 05:09 AM
Tuesday, September 16, 2008
ISLAMABAD: Commercial and industrial sectors were already suffering due to the hike in gas and power rates and rising fuel prices while the spike of 40 per cent in electricity rates has added more pressure, said the ICCI President, Muhammad Ijaz Abbasi.
Abbasi said this increase in power tariff has created unrest among the industrial sector, especially the manufacturers who are already hard hit by high input costs including gas, petrol, electricity, transportation and costlier imports of raw materials because of the depreciating rupee.
He said due to these factors, over 4,000 business units of small traders and cottage industries have closed down and more could face the same with the recent hike in power tariff. He said this phenomenon will create unemployment and closure of business units. This measure will also affect the middle class as their rates are likely to rise up by 60 per cent, which will erode their purchasing capacity and impacting the business activities.
Instead of pushing up power tariffs, Mohammad Ijaz stressed for the need of controlling ever rising system losses in the power sector. He said due to inefficiency and lukewarm approach, power sector has miserably failed to reduce transmission losses and electricity pilferage He also emphasised for urgently resolving the causes of over Rs.400 billion circular debt, which has become a major issue in sorting out the energy problems.
Abbasi ultimately called for revoking this unprecedented increase in power tariff and stressed that before taking important economic decisions, government should take business community into confidence to save the economy from a further slump.
http://www.thenews.com.pk/daily_detail.asp?id=136040
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ISLAMABAD: The Islamabad Chamber of Commerce and Industry (ICCI) on Monday said over 4,000 business units of small traders and cottage industries have closed down and more could face the same fate with the recent 40 percent hike in power tariff. Addressing a meeting, Mohammad Ijaz Abbassi, President ICCI said that the 40 percent rise in power rates allowed last week for industrial and commercial consumers would further increase the cost of doing business and would further add to their woes and even threaten the survival of some business entities. He said this enormous increase in power tariff has created unrest among the industrial sector, especially the manufacturers who were already hit hard by high input costs including gas, petrol, electricity, transportation and costlier imports of raw materials because of depreciating rupee.
He said this phenomenon would create massive unemployment due to closure of business units creating social problems and pushing more people towards unemployment and poverty. He said this measure would also badly affect the domestic middle class as their rates were likely to rise up to 60 percent, which would direly erode their purchasing capacity ultimately putting negative impact on business activities. Instead of frequently pushing up power tariff, Mr Abbasi stressed for the need of controlling ever-rising system losses in the power sector. He said due to inefficiency and lukewarm approach, power sector has miserably failed to reduce transmission losses and electricity pilferage that in some cases continues to stay above 35 percent. He also emphasised the need for urgently resolving the major causes of over Rs 400 billion circular debt, which had become a big issue in sorting out the energy problems. He called for revoking this unprecedented increase in power tariff and emphasised that before taking all important economic decisions, government should take business community into confidence by taking their consultation and input to save the economy from further slump. staff report
http://www.dailytimes.com.pk/default.asp?page=2008\09\16\story_16-9-2008_pg5_2