LAHORE : Though the formation of Govt-IndustryEnergy Council (GIEC) by the Prime Minister is a step in rightdirection but the need of the hour is to initiate work on doablepower generation projects as energy is an essential driver of theeconomy and things are fast getting out of hand with every passingday.
In a press statement, the Chairman Pakistan Industrial andTraders associations Front (PIAF) Engineer Sohail Lashari andChairman Lahore Township Industries Association (LTIA) Haroon ShafiqChaudhry has said it was very unfortunate that not only the industrybut the masses as well were suffering badly due to over 3000MWelectricity shortage.
The PIAF Chairman said that the Manufacturing Sector was in deeptroubles and its growth could exceed 2.3 per cent despite bestefforts by the private sector. They feared that if the situationremained the same for quite some time now, the manufacturing growthwould come down further.
He said that had a little attention been given towards theconstruction of water reservoirs in the country, the situation todaywould have been quite different. He said that the government shouldalso immediately initiate exercise to develop consensus for theearly construction of Kalabagh Dam that is one of the best solutionto the acute shortage of energy.
He said that the cheaper electricity was not only essential forthe industrial sector but it was also necessary for the agriculture.He said that besides the industrial sector, the agriculture sectorwould also suffer badly because the produce would be costlier whenthe tubewells would be running on diesel instead of electricity.
The PIAF Chairman said that the energy shortage is the singlemost critical factor that is responsible for poor domestic output.This, in turn, is compromising the government's ability to raise itscollections from taxes levied in the value added mode, inclusive of
sales tax and excise duty. High energy costs, passed on to theconsumers are fuelling inflationary pressures. Without ensuringuninterrupted energy supply to the industry, the government cannotpossibly hope to increase the Gross Domestic Product growth rate orindeed facilitate competition of Pakistani exports with those of ourcompetitors.
sales tax and excise duty. High energy costs, passed on to theconsumers are fuelling inflationary pressures. Without ensuringuninterrupted energy supply to the industry, the government cannotpossibly hope to increase the Gross Domestic Product growth rate orindeed facilitate competition of Pakistani exports with those of ourcompetitors.
He suggested to the government to give priority to thedevelopment of local energy sources including hydel and Thar coalfield.
The PIAF Chairman also urged the Prime Minister to announce aspecial package of incentives in forthcoming budget for the revivalof business activities and to give boost to exports so that thecountry could be able to undo the negative affects caused by globalfinancial crisis and acute shortage of electricity. The Chairman PIAF said that the private sector had both theability and the potential cope with fast increasing unemployment andpoverty but to ensure the contribution of the private sector, thegovernment would have to provide it with uninterrupted supply ofelectricity.
