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Press Release

LCCI shocked over NEPRA decision to increase tariff

The Lahore Chamber of Commerce and Industry has expressed deep concern over NEPRA decision to increase power tariff by Rs. 4.57 per unit under monthly Fuel Charges Adjustment (FCA) Mechanism and feared that it would hit the trade and industry hard. In a statement, LCCI President Kashif Anwar, Senior Vice President Zafar Mahmood Chaudhary and Vice Presi­dent Adnan Khalid Butt said the December FCA of Rs 4.57 kWh will replace Rs 4.13 kWh of November 2023. They said that repeated hike in power tariff is hitting exports and local businesses alike. They said that above all, the dollar rupee parity needs to be further narrowed down to support the manufacturing sector.

LCCI office-bearers said that the government has increased the electricity prices many times which is a sheer in­justice. They said that the majority of people have been sent bills many times more than their monthly income. On the other hand, the issue of over billing is adding fuel to the fire. “Few days back, the LCCI Executive Committee has shown its sentiment on the issue of over billing”, they added.

They said that electricity is the main raw material of industries, if such anti-industry measures are not avoided, the manufacturing sector will be completely destroyed and the country will remain only a trading place. They said that despite the increase in electricity prices by several hundred percent, the circular debt could not be controlled, while the energy crisis has also become worst, due to which the industrial production will come to lowest level.

The LCCI office-bearers said that the cost of electricity in Pakistan is already very high compared to other countries in the region and Pakistani products are fast vanishing from the global market.

They said that the country has al­ready lost much of the global market to Bangladesh and India due to high production costs. They said that more burden is being put on those customers who are paying their dues regularly and whose line losses are least. The LCCI President said that the trend of theft will increase due to the increase in electricity prices. The business community is unable to un­derstand why instead of controlling line losses and increasing generation of cheap power, their problems are being compounded. They said that the growth rate of the manufacturing sector should be eye-catching for the policy makers but they are stagnant to correct the situation. They urged the government to take immediate notice of the situation and announce an immediate reduction in electricity prices.