Costly energy poses survival risks, warns FPCCI

While urging the government to immediately implement a nine-cent per kWh power tariff, the business leaders have warned that high gas prices will bring the industries on the verge of collapse due to rising cost of production amid surging inflation. Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Acting President Saquib Fayyaz Magoon told a press conference on Wednesday at the Federation House that the exports are becoming uncompetitive on the world market due to unprecedented gas and power tariffs. He said industries were paying 17 cents per kWh whereas our regional competitors were getting electricity at half of that price. The power purchase price has increased by 95.82pc since July 2018 which is mainly due to the higher capacity component in the power tariff. Last year, the industry witnessed a 10pc reduction in power generation which resulted in a higher per unit capacity component, he said.