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Expensive electricity is bankrupting businesses

Karachi, September 21, 2022 (PPI-OT):FPCCI’s Presidential candidate Atif Ikram Sheikh on Wednesday said expensive electricity is bankrupting the economy. Costly electricity is affecting production and exports and it is necessary to make electricity affordable to boost the economy and improve the quality of life of the people, he said. Atif Ikram Sheikh said that electricity should be made cheaper to increase production and reduce the cost of services.

In a statement issued here today, he said that there is a need to develop small Power plants and promote renewable energy in Pakistan like developed countries to solve the energy problem.

The practice of building large grid stations has ended in developed countries and if the same is done in Pakistan, losses of billions of rupees can be reduced. As of last year, 50 million people in Pakistan were without electricity, and the number has increased after the floods, he informed.

Pakistan depends on petroleum imports for electricity, which costs billions of dollars and also increases pollution, even now, sixty-four percent of the electricity in Pakistan is being generated from imported fuel.

Energy policy should be aligned with ground realities so that people get affordable electricity, he demanded. NEPRA is continuously increasing power tariffs to add to the burden of the masses, who are already reeling from inflationary pressures due to rising food and fuel prices.

The government has faced criticism for increasing fuel prices during the last few months, but top officials argue the country still offers petroleum products at the cheapest rates in the region. The government fixes the prices of petroleum products on a fortnightly basis to pass on the impact of fluctuating international prices to consumers.

Three renewable energy sources — wind, bagasse and solar — together contributed 6.5pc of the total power supply. Wind and solar have no fuel cost, while that of bagasse has been calculated at Rs5.98 per unit.

For more information, contact:
Head Office,
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
Federation House, Main Clifton, Karachi, Pakistan
Tel: +92-21-35873691-94
Fax: +92-21-35874332
Email: info@fpcci.org.pk
Website: http://fpcci.org.pk/

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