Industrial power tariffs as tool for cross-subsidy: Tanveer says approach eroding industrial competitiveness

FPCCI leader and Patron-in-Chief UBG S M Tanveer has expressed serious concerns over the continued use of industrial electricity tariffs as a tool for cross subsidy, warning that this approach is steadily eroding Pakistan’s industrial competitiveness and export capacity. He stated that industrial tariffs are currently carrying a cross subsidy burden ranging from Rs 4.5 to Rs 7 per unit, with a total impact of Rs 131 billion, which translates into an additional cost of nearly 20 percent on already expensive electricity. According to him, industry is barely managing to carry its own burden, and this extra cost is pushing many units towards closure or long term contraction.