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Karachi, Muhammad Kamran Arbi, President of the SITE Association of Industry, has called attention to the detrimental effects of high industrial power tariffs on production and export numbers.
According to a news release by SITE Association of Industry, the high power tariffs have hindered industrial output, leading to a noticeable decline in exports. The KE’s Annual Report 2023 underlines this, revealing an approximate 8% drop in units dispatched due to economic slowdown and tariff-induced low demand. This energy consumption drop has subsequently led to a 4% ($280mn) dip in exports during 1Q FY24 compared to the previous year.
SITE President emphasized that while the government acknowledged the situation by allocating rupees 45 billion to support the incremental use of electricity, this relief remains inaccessible for industries based in Karachi, labeling it a clear discriminatory act. The President also addressed the collection of an Additional Surcharge PHL on KE bills meant for IPP Capacity Payments. Given that KE primarily produces its own electricity, this charge seems unfair, especially for the industrial consumers in Karachi. SITE’s President also voiced concerns about the current Peak hours’ tariff system, considering the continuous nature of production in the manufacturing industry.
Highlighting the broader implications of these challenges, the SITE President noted that the rising production costs are rendering Pakistani industries, especially exporters, less competitive on the international stage compared to neighbouring nations. He earnestly appealed to Caretaker Prime Minister Anwaar-ul-Haq Kakar, Energy Minister Muhammad Ali, and Chairman NEPRA to address these pressing concerns and reconsider the subsidy structure to support struggling industries.
The post SITE President Highlights Challenges of High-Power Tariffs on Industrial Production appeared first on Pakistan Business News.