Staff Reporter
Islamabad
Former President ICCI Shahid Rasheed Butt has said that the circular debt should not be reduced at the cost of the export sector, which is already facing serious problems amid a global slowdown.
In a statement on Tuesday, Shahid Rasheed Butt said that almost seventy percent hike in the power tariff for the export sector, from 7.5 cents/kWh to 13 cents/kWh will leave this import sector bankrupt resulting in massive unemployment.
He said that textile is the largest foreign exchange earning sector and second-largest employment provider which should not be made to pay for the inefficiencies and mismanagement of the power sector.
Improving exports is the best way to create jobs and end dependence on foreign loans; therefore, this sector should not be discouraged, the business leader added.
Shahid Rasheed Butt said that power tariff should not be increased, rather line losses should be reduced, recoveries should be improved and distribution companies that are inflicting heavy losses should be sold without delay.
He said that the decision has left investors in panic while fulfilling export commitments has become very difficult while missed deadline will damage the reputation of the country in the international market.
The business leader noted that the power sector is already making over 200 percent profit on electricity sold to the export industry and a further hike in tariff to reap more benefits cannot be justified.
He said that China is providing electricity to its export sector at the rate of 10 cents/kWh while the tariff for Xinjiang is 7.5 cents/kWh.
Power tariff is eight cents/kWh for export industry in Vietnam, nine cents/kWh in Bangladesh and India while it is seven cents for the export industry located in the Indian Punjab.
