Industry Leader Calls for Additional Tariff Cuts to Boost Economic Revival

ISLAMABAD ( WNAM REPORT ): Mian Muhammad Akram Farid, a prominent figure in Pakistan’s business community and former President of the Islamabad Chamber of Commerce and Industry (ICCI), former Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), and Chairman of the Employers’ Federation of Pakistan (EFP) Central, has lauded the recent reduction in electricity tariffs announced by Prime Minister Mian Shehbaz Sharif. He emphasized that this step signifies the current government’s commitment to revitalizing the national economy and providing much-needed relief to the industrial sector.
Farid specifically acknowledged the PKR 7.69 per unit reduction in the industrial electricity tariff, stating that it would offer a significant respite to industries across the nation. He extended his sincere appreciation to Federal Minister for Energy Sardar Awais Leghari, former Federal Minister for Commerce and UBG Group Leader Gohar Ejaz, Member of the National Assembly (MNA) and UBG Senior Leader Dr. Akhtar Baig, Patron-in-Chief of the United Business Group (UBG) SM Tanveer, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Atif Ikram Sheikh, and President of the Islamabad Chamber of Commerce and Industry (ICCI) Nasir Qureshi for their relentless dedication and collaborative efforts in making this crucial relief package a reality.
However, while welcoming the initial tariff reduction, Mian Muhammad Akram Farid highlighted a critical area requiring further attention to maximize the benefits for the industrial sector and align with the Prime Minister’s broader vision of public relief. He pointed out the exceptionally high Maximum Demand Indicator (MDI) rate currently imposed on industries, which stands at PKR 1244 per unit. Farid asserted that this unprecedented MDI rate represents the highest in industrial history, contributing significantly to an exorbitant surge in the overall cost of doing business for manufacturers and producers.
In light of this challenge, Farid passionately appealed to the government to consider a substantial reduction in the MDI rate, proposing a decrease of approximately half the current rate. He argued that such a measure would be instrumental in enabling industries to sustain and even enhance their production capacities to their fullest potential. This, in turn, would have a positive cascading effect on job creation, economic growth, and the availability of affordable goods for the general public.
Furthermore, Farid addressed the issue of high peak hour electricity rates, noting that these coincide with periods of maximum business activity. He strongly advocated for the standardization of peak hour electricity tariffs with those applicable during off-peak hours. He emphasized that implementing a uniform rate structure would directly contribute to fulfilling the Prime Minister’s commitment to provide tangible relief to the general public by reducing operational costs for businesses and ultimately impacting the prices of goods and services.
Mian Muhammad Akram Farid’s statement underscores the importance of a supportive energy policy in fostering industrial growth and achieving broader economic stability. While acknowledging the government’s initial positive step, his detailed recommendations regarding the MDI and peak hour rates highlight the need for continued focus on addressing the specific challenges faced by the industrial sector to fully realize the Prime Minister’s commitment to public relief and national economic recovery.