ICCI Slams Unprecedented Hike of Rs.7.90 per Unit in Electricity Bills

President Islamabad Chamber of Commerce & Industry (ICCI), Muhammad Shakeel Munir, has slammed the National Electric Power Regulatory Authority (NEPRA) for finalizing an unprecedented hike of Rs. 7.90 per unit as an additional fuel cost adjustment for the electricity consumed in May 2022.

The President ICCI termed it a harsh decision as it would put an additional financial burden of Rs. 136 billion on the consumers in their bills for July 2022. He said the decision would further enhance the cost of doing business and badly affect the production activities. He stressed that the government should reconsider this hike to save the businesses from trouble and the people from high inflation.

Muhammad Shakeel Munir said that it has become a norm in Pakistan to pass on the cost of transmission & distribution losses and power theft to the end consumers of electricity, which might have no precedent in other countries. He said that instead of putting the burden on the poor performance of power companies, the government should bring drastic reforms to reduce their losses and make them efficient.

He further said that the energy cost in Pakistan is already the highest in the region, and such hikes in Fuel Cost Adjustments (FCAs) would further increase production costs making our exports uncompetitive. He pointed out that according to a report by Asian Development Bank (ADB), Pakistan’s energy sector has been a major hurdle in the economic growth of the country as the energy crisis had resulted in a huge loss of $82 billion in GDP between 2007 and 2020.

ICCI President said that the availability of cheap energy is the key requirement to reduce the cost of doing business, boost economic activities and generate new jobs for youth. However, high energy costs in Pakistan due to repeated hikes in power tariffs and FCAs will render our industry uncompetitive in the international market. He stressed that the government should focus on utilizing cheap energy sources to reduce energy costs which would make the private sector competitive. He further stressed that instead of making repeated hikes in power tariffs, the government should address the issues of the power sector and introduce reforms in it to make it efficient and cost-effective.

Senior Vice President ICCI, Jamshaid Akhtar Sheikh, and Vice President ICCI, Muhammad Faheem Khan, said that the supply of energy at an affordable cost is very important to accelerate the growth of agriculture, manufacturing, and services sectors. However, the lack of reliable and affordable power has become a major constraint to the better growth of business activities. They stressed that the government should take priority measures to harness the cheap energy sources for energy generation to pave the way for sustained and inclusive growth of the country.



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