Business Leader Criticizes Tariff Hikes Amid Power Sector Reforms

Karachi: The Chairman of the National Business Group Pakistan, Mian Zahid Hussain, has commended government efforts to eliminate circular debt in the power sector but cautioned against solutions that burden consumers.

Hussain, also leading the Pakistan Businessmen and Intellectuals Forum and other industrial alliances, highlighted the persistent threat posed by circular debt, which he described as a cycle of unpaid bills and loans within the power sector. This debt weakens companies’ financial capacity and discourages investment, impacting electricity generation.

Addressing the business community, Hussain acknowledged the government’s measures, including bank loans to settle dues and actions against defaulters, as necessary reforms. However, he stressed that these reforms must be sustained and effectively implemented.

Hussain warned against making the public pay through higher electricity bills, arguing that tariff hikes are a short-sighted strategy that harms consumers and inflates industrial costs. He urged a focus on administrative reforms instead.

Identifying electricity theft and a poorly maintained transmission system as root causes of circular debt, Hussain proposed granting autonomy to distribution companies with strict performance oversight. He also advocated for public-private partnerships in renewable energy to reduce fuel dependence.

Hussain emphasized transparency in reform initiatives to prevent vested interests from undermining progress. He called for reducing electricity tariffs to boost exports, arguing that a balanced energy policy is vital for economic stability and public welfare.