(Jan-05-2024)
Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain, said on Friday that the expense of gas and electricity is preventing local and foreign investment.
He said that without inexpensive energy, exports and production cannot increase, hence taxes will remain unsatisfactory and unemployment will increase.
Mian Zahid Hussain said that SIFC ought to make an effort to lower gas and energy rates to attract investment.
Speaking to the business community, the veteran business leader said that people and investors are worried due to the ever-increasing prices of electricity, gas, and oil.
Energy prices in Pakistan are the highest compared to other countries in the region, which is hampering exports, he said.
The business leader observed that a reduction in electricity and gas prices is possible provided line losses, theft, and defaults are eliminated. Instead of capacity payments, full utilization of electricity production should be ensured.
He demanded that SIFC take note of this situation and take steps so that investment could be lured, which would also increase employment, income, and revenue.
Pakistan’s hands are tied due to the IMF’s deal, and apparently it is difficult to give relief to the people and the business community, but some way should be found for it; otherwise, investors will prefer neighboring countries instead of Pakistan.
Why would investors prefer Pakistan over neighboring countries where energy is cheaper and overall conditions are much better? he questioned.
Mian Zahid Hussain further said that electricity rates in India, Bangladesh, and Vietnam are almost half of those in Pakistan, due to which it has become difficult for our exporters to compete with these countries in the global market.
He further said that the industrial sector is already drowning in the mire of problems, but it is forced to pay Rs 300 billion extra in power bills so that the masses can be subsidized.
Mian Zahid Hussain further said that due to the high cost of electricity, its usage is decreasing, which is a bad omen for the economy, while the theft of electricity is increasing, which has to be borne by honest consumers.
By making electricity cheaper for the industrial sector, production, exports, and employment will increase, while increasing its use will also reduce the circular credit, but the current policy is the opposite, he observed.
The textile industry can export two billion dollars per month, but the energy sector is blocking its way and is constantly weakening it, which should be taken into immediate notice and necessary steps should be taken, he demanded.
