Cut in Industrial Power Tariff Welcomed, but Heavy Fixed Charges May Hurt SMEs: Ali Humayun Butt

Gujranwala Chamber chief calls for zero fixed charges for B1 and B2 categories, stresses competitive energy rates to achieve export targets

Gujranwala: President of the Gujranwala Chamber of Commerce and Industry, Ali Humayun Butt, has welcomed the federal government’s decision to reduce the industrial electricity tariff by Rs4.04 per unit, describing it as a positive step that will provide partial relief to industries.

However, he warned that the imposition of Rs1,250 per kilowatt in monthly fixed charges could create serious difficulties for small and medium-sized enterprises (SMEs).He noted that Gujranwala is home to more than 20,000 small and medium industrial units, skilled craftsmen, and workshops, particularly those falling under the B1 and B2 categories, which operate with limited resources. In such circumstances, heavy fixed charges would significantly increase production costs, adversely affecting business activity and potentially leading to job losses.Ali Humayun Butt urged the government to introduce a zero fixed charge policy for B1 and B2 categories to ensure that relief genuinely reaches the grassroots level.

He emphasized that with the government setting an ambitious export target of $60 billion, it is essential to provide domestic industries with energy rates comparable to those in competing regional economies.He further stated that without offering competitive electricity rates of 9 cents per unit to key sectors such as fans, sanitary ware, and metal industries, it would be difficult to compete effectively in international markets. He cautioned that unless energy costs are sustainably reduced and additional burdens like fixed charges are reconsidered, industrial growth and export expansion could be negatively impacted.

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