Roll back FAC & fixed charges on electricity
Mr. Irfan Iqbal Sheikh, President FPCCI, has decried the ruthless and consultation-less consecutive increases in the electricity tariff will force shut the industry across Pakistan; as achieving a break-even in the current cost of doing business environment has become impossible, leave alone being competitive in the export markets.
Mr. Irfan Iqbal Sheikh maintained the process which started 4 months back; and will fully reflect in electricity bills in another 2 months; means a cumulative increase of 70 – 80 percent, if all billing components are accounted for, i.e. base tariff, sales tax, income tax and excise duty. Base tariff alone has been increased by PKR. 9.80 / unit, reflecting an increase of 50 percent and the all-inclusive cost per unit will be close to PKR. 60.
FPCCI Chief said that the government should be cognizant of the fact that these are counterproductive and counterintuitive measures; as these kinds of electricity bills are not even payable or recoverable. Therefore, there are major defaults and bankruptcies on the cards, he added.
Mr. Irfan Iqbal Sheikh explained that after two months, when the full quantum of increased bills will be evident, there will certainly be production losses and loss of output; which will put even repeating the export performance of the last year in jeopardy. It is pertinent to note that country’s exports in the first month of FY23, i.e. July 2022, have already fallen by 24 percent.
