Export Sector To Crumble Under The New Power Pricing Regime

The circular debt should not be reduced at the cost of the export sector, which is already facing serious problems amid a global slowdown, a business leader said

ISLAMABAD (UrduPoint / Pakistan Point News - 28th January, 2020) The circular debt should not be reduced at the cost of the export sector, which is already facing serious problems amid a global slowdown, a business leader said.Almost seventy percent hike in the power tariff for the export sector, from 7.5 cents/kWh to 13 cents/kWh will leave this import sector bankrupt resulting in massive unemployment, said Shahid Rasheed Butt former President ICCI.He said that textile is the largest foreign exchange earning sector and second-largest employment provider which should not be made to pay for the inefficiencies and mismanagement of the power sector.

Improving exports is the best way to create jobs and end dependence on foreign loans; therefore, this sector should not be discouraged, he added.Shahid Rasheed Butt said that power tariff should not be increased, rather line losses should be reduced, recoveries should be improved and distribution companies that are inflicting heavy losses should be sold without delay.He said that the decision has left investors in panic while fulfilling export commitments has become very difficult while missed deadline will damage the reputation of the country in the international market.