Pakistan Cloth Merchants Association (PCMA) Chairman Ahmed Chinoy has urged the federal government to urgently reduce electricity tariffs to Rs. 26/kWh to revitalize the economy and safeguard the livelihoods of millions.
In a statement, Chinoy lamented that industries and small- to medium-sized businesses had suffered the worst of exorbitant electricity costs, hampering their operational capacity. Stressing that industries must remain globally competitive, he explained that lowering tariffs would reduce operational costs, stimulate industrial growth, and foster a more resilient economy.
According to Chinoy, lowered tariffs would reduce production costs and enhance profitability and sustainability; attract foreign investment; and facilitate a reliable and efficient supply chain.
He warned that sustaining prevailing electricity tariffs would force more businesses to shut down, resulting in job losses and stifling innovation. This, he warned, would in turn discourage startups and established companies alike from pursuing expansion and technological advancements. “Without immediate relief, the socioeconomic fabric of our nation will continue to unravel,” he said.
On the urgent need for lower tariffs, the PCMA chairman said that continuing prevailing tariffs could lead to an economic recession, hampering efforts at recovery. He said such tariffs would also put undue financial strains on businesses, preventing them from even sustaining basic operations. Delays in policy reforms, he stressed, could also potentially lead to a loss of market share in key sectors.
In his statement, Chinoy has advised the government to immediately pass on savings from revised independent power producer contracts to consumers. Passing on such savings, he said, would restore trust in public institutions and demonstrate a commitment to economic justice and fairness.