By Our Correspondent
LAHORE: The Lahore Chamber of Commerce and Industry has urged the government to immediately reduce electricity prices, lower taxes on the power sector and abolish fixed charges to alleviate the burden on industries and businesses. Addressing a Press Conference, LCCI President Mian Abuzar Shad, Senior Vice President Engineer Khalid Usman and Vice President Shahid Nazir Chaudhry said that electricity is a critical input for the industries and its soaring cost is undermining Pakistan’s competitiveness in global markets.
They said that electricity costs in Pakistan average 16 cents per unit, compared to 7 to 8 cents in India, 8 to 9 cents in Bangladesh, 9 to 12 cents in Sri Lanka and just 2 to 3 cents in Tajikistan. “How Pakistan could compete internationally under such conditions”, they questioned.
Former LCCI President Muhammad Ali Mian and former Vice President Haris Atiq also addressed and said that high electricity tariffs, compared to other regional countries, are unsustainable for Pakistan’s industries. They noted that this disparity is diminishing Pakistan’s share in global markets and harming export performance.
LCCI President Mian Abuzar Shad expressed concerns over MDI and fixed charges, calling them an unwarranted financial strain. “These charges are based on assumed consumption rather than actual usage, imposing an unnecessary burden on businesses,” he added.
He criticized the additional costs in electricity bills, including duties, television fees, fuel price adjustments, general sales tax, income tax on fuel adjustments and excise duty, making electricity bills a compilation of taxes.
Senior Vice President Engineer Khalid Usman underlined the need to lower electricity prices to reduce production costs and foster industrial growth. He warned that expensive electricity has pushed operational costs to unsustainable levels, stifling economic activity. Additionally, he highlighted that political instability is further hampering business confidence and economic growth.
Vice President Shahid Nazir Chaudhry shared insights from a meeting with the Tajik ambassador, who revealed that electricity in Tajikistan costs only 2 cents per unit, with no import duties on industrial machinery. In contrast, Pakistani industries face exorbitant electricity costs and additional hurdles created by various government departments.
Former President Muhammad Ali Mian advocated for a forensic audit of Independent Power Producers (IPPs) and urged the government to address systemic issues such as line losses, electricity theft and alternative energy promotion. “Pakistan’s average line losses stand at 16%, which must be reduced through an improved power transmission system,” he emphasized. He also criticized the lack of resolution on overbilling issues, such as the detection of 60 million units of overbilling by Caretaker Chief Minister Mohsin Naqvi.
The LCCI leadership demanded of the government to align electricity tariffs with regional competitors to enhance industrial competitiveness. Unjust capacity charges agreements with IPPs should be terminated, which cost the government over PKR 2,100 billion annually, irrespective of electricity usage.
They said that the government should abolish MDI and fixed charges that impose unnecessary financial burdens. Superfluous taxes and surcharges from electricity bills should be removed. Power transmission system should be upgraded to curb line losses.
The LCCI representatives warned that these challenges affect every sector of society and could further destabilize Pakistan’s economic and industrial infrastructure if left unaddressed. They urged the government to take swift and decisive action to restore stability, enhance industrial competitiveness and set the country on the path to sustainable economic growth.
