Lockdown-hurt business community sees positive impact of electricity tariff discounts announced by the government for trade and industry on revving up the economy.
Anjum Nisar, president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) says electricity cost will help in overcoming inflation and spurring economic growth.
Prime Minister Imran Khan has announced reduction in electricity tariffs for industrial sector. From November 1, the additional electricity used by small and medium enterprises up to June 30, 2021, will be sold at 50 percent lower the cost, he said.
Large industries will pay reduced electricity costs without any condition of off-peak hours.
Shariq Vohra, president of president Karachi Chamber of Commerce and Industry said that overall the industry is very happy with this decision of the government.
Ikhtiar Baig, former senior vice president of FPCCI, said the government proposed a 50 percent discount on electricity use for small scale industries, and 25 percent discount for medium scale industries.
Jawed Bilwani, chairman of Pakistan Apparel Forum said the decision will benefit small and medium industries, which are the backbone of the economy.
Bilwani said the cost of electricity in the country is expensive because of previous contracts signed for power generation, which has adverse effects on the economy.
Government has announced discounts on additional electricity use. Industrialists will only be able to consume additional electricity if they expand, which would take time.
The government needs to reduce the tariff for existing use of electricity, which would really benefit the exports.
