HCSTSI assails power tariff rise

HYDERABAD: Muhammad Saleem Memon, President of the Hyderabad Chamber of Small Traders & Small Industry (HCSTSI), has strongly condemned the recent increase in electricity tariffs, stating that any per-unit hike directly raises industrial production costs.

He warned that such increases would render local industries uncompetitive, severely impacting exports, employment, and overall economic activity.

The President HCSTSI highlighted that industrial consumers in Pakistan currently pay approximately 13.5 cents per unit of electricity, which is significantly higher than neighbouring countries: Tajikistan (2–3 cents), India (6–7 cents), Bangladesh (8–9 cents), and Sri Lanka (9–12 cents). Under these conditions, Pakistani industries cannot compete on price with regional economies such as Tajikistan, India, Bangladesh, Sri Lanka, Indonesia, and others while European markets are virtually out of reach.

Memon emphasized that high electricity costs constitute a major portion of industrial production expenses, directly affecting exports, profits, investment, and employment. This cost disparity also makes Pakistani products uncompetitive in international markets, weakening the export performance of sectors such as textiles, ceramics, auto parts, and food processing.

He further drew attention to capacity charges and IPP (Independent Power Producer) agreements, noting that the government has so far reviewed agreements with only a limited number of IPPs, resulting in savings of approximately PKR 3,600 billion. He stressed that if these agreements were made on principled grounds with all IPPs, or if existing agreements were reviewed or renegotiated, thousands of billions of rupees could be saved, significantly reducing electricity costs for consumers and industry.

Copyright Business Recorder, 2026