ISLAMABAD: The business community took strong exception to the Economic Coordination Committee of the Cabinet decision on imposition of extra burden to the tune of Rs75 billion on power consumers including three surcharges worth Rs2.4/unit and additional cost of system losses in the tariff, termed it an unwise move.
In press statement, Islamabad Chamber of Commerce and Industry (ICCI) President Muzammil Hussain Sabri, Senior Vice President Muhammad Shakeel Munir and Vice President Muhammad Ashfaq Hussain Chattha regretted that instead of taking policy measures to improve efficiency of the power companies, the government simply passed on the cost of poor performance to the consumers to meet the IMF conditions, which was totally unfair and unjustified.
They emphasized that power companies were responsible to bring down transmission and distribution losses and provide electricity at affordable cost. They said that 1 percent system losses of power companies translated into about Rs6 billion and passing on 18 percent T&D losses to consumers meant putting extra burden of Rs108 billion.
They pointed out that power tariff in Pakistan was already highest in the region due to which cost of doing business was high country, adding that annual burden of Rs75 billion in power tariff would prove detrimental to the economy and would cripple the industry, discourage new investment and fuel capital flight from the country.
