The Pakistan Cloth Merchant Association (PCMA) on Monday backed the business community in urging authorities to reconsider a proposed 400% increase to security deposits by power distribution companies (DISCOs).
In a statement, PCMA Chairman Ahmed Chinoy noted “significant” concerns over the proposal. He warned that the substantial increase would impose excessive financial burdens on consumers, particularly manufacturers and exporters, reducing their industrial competitiveness.
He said the proposed hike lacked transparency and logical justification. Chinoy warned the move could potentially discourage industrial expansion and counter government initiatives aimed at promoting economic growth and increasing exports.
“We stand in solidarity with the business community in opposing this unjustified increase,” said Chinoy. “Such a move threatens to undermine the competitiveness of our industries and places an undue financial strain on businesses already grappling with rising production costs,” he added.
The PCMA urged the National Electric Power Regulatory Authority (NEPRA) to review the valid concerns raised by various stakeholders and reject the proposed increase. It has called on DISCOs to focus on improving revenue collection efficiency rather than imposing additional financial burdens on consumers.
NEPRA is set to conduct a public hearing on the proposed hike on Feb. 12. It has invited stakeholders to attend and present their objections and recommendations to the measure.