THE NATION...................................................................................................................OCT 15,2011.
LAHORE – Taking a strong exception to the government for its decision regarding over 30 per cent increase in power tariff, the business community has urged the government to withdraw the decision, as it would prove last nail in the coffin of country’s economy. They have urged the federal government to notify and allow setting up of 500MW power generation projects to the provincial governments as per the 18th Amendment. They said that through over 50 per cent increase in last three months government has virtually pushed the entire trade and industry to the wall.
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) criticised abrupt hike in power tariff, saying it would increase cost of production. FPCCI President Senator Haji Ghulam Ali said that Petroleum Ministry has estimated that gas theft caused a loss of Rs20 billion and oil theft a loss of Rs18 billion a year, apart from energy pilferage worth billion of rupees. He stated that instead of abrupt hike in power, gas tariffs and raise in petroleum prices, the government must check the theft of these vital resources and thus provide much needed relief to industry.
He urged the government to appoint high profile, competent technocrats in the state-run mega national organisations including Wapda, Pakistan Steel Mills, PIA, PSO and Pakistan Railways.
PIAF Chairman Sohail Lashari said that the provincial governments would have to complete the power projects on priority basis. He said if the federal govt grants permission to the provinces to generate power, only Gilgit Baltistan has the capacity of 50,000MW hydel power. In this way, the provinces would not only meet their domestic demands but would also be able to export extra electricity.
Engineer Lashari welcomed the reports of the opening of Bhasha Dam project and urged the government to complete the project on emergency basis.
He said that there is no hiccup nor any objection from any circle for the construction of Bhasha Dam yet the project is being delayed without any reason.
He said that the decision taken in the recent meeting of the PM will save the energy to a little extent but this is not the real solution of the crisis as it will lead to huge cut in business volume besides cut in exports. Iftikhar Malik said that keeping in view the business scenario world over, high rate of mark up by banks should be reduced to single digit for providing relief to the industry. "All these factors are increasing the cost of doing business", he added.
LCCI President Irfan Qaiser Sheikh said that it was quite alarming that only last month an increase of 22 percent was made in electricity tariff that had failed to decrease gap between the cost of power generation and revenue collected.
The cost of doing business would now go the level where nobody would be putting any money into any new venture and existing one would be bound to shift their operations to other countries.”
He said that the Pepco is adding up a staggering amount of Rs 30 billion per month as circular debt due to inefficiency in collection of power dues, its failure to stop power theft and Kunda culture. He said that these inefficiencies are actually an unjust tax on honest power consumers.
He said that the industrial sector as a whole pays its dues in time and there are no line losses/ theft most of the industrial estates and industrial estates in Lahore are one example.
He said that all the power distribution companies should be directed to determine their respective electricity tariffs on the basis of line losses. For instance if the line losses in one Disco are bigger than the other, the power tariff in that particular Disco should be more than the other.
He said business community was surprised that instead of taking measures to control line losses and enhance cheap power generation up to capacity, the policies are being evolved to add to the miseries of the business doing people.