The recent hike in power tariff will increase the cost of production by 21 percent, making Pakistan’s industry uncompetitive in the world market, feels Muhammad YasinSiddik, Chairman All Pakistan Textile Mills Association (APTMA). Addressing a press conference recently, he said that the government had increased power tariff for the industry by 70 percent which was not acceptable.

The hike has taken the power tariff of the industry to Rs 13.16 per unit as against Rs 7.75 per unit. He said they have rejected this increase that is just because of inefficiency of GENCOS and distribution system. He said that following the directives of the Supreme Court, the federal government had already withdrawn the notification for the recent increase for the domestic consumers, while the higher tariff for the industrial sector still existed despite the fact that both increase was made through the same notification.

The chairman also disclosed that the NEPRA chairman had proposed diverting gas from the Captive Power Plants (CPPs), CNG sector and fertilizer to GENCOS (generation companies) so that they could generate expensive electricity and sell it to the industry at highest rate. He rejected this proposal presented by NEPRA chief in the Supreme Court and warned the government that the result of withdrawal of gas from CPPs would be a drastic one.