Pakistan Business Council Calls for Lower Power Tariffs to Boost Economic Growth

The Pakistan Business Council (PBC) has called on the government to reduce power tariffs, emphasizing the negative impact of high tariffs on both consumption patterns and economic growth. In a statement posted on X on Thursday, the PBC expressed concern that elevated power tariffs not only discourage consumption among honest consumers but also create a heightened incentive for theft. The result, as noted by the council, is increased unutilized generation capacity, higher capacity charges, and additional strain on circular debt. The PBC argued that a reduction in tariffs would effectively address these challenges. According to PBC, the substantial unutilized generation capacity could be harnessed for the benefit of productive sectors like industry. Lower-priced power in these sectors would stimulate higher employment rates and economic activity, subsequently contributing to increased tax revenue and exports. Urging authorities to take immediate action, the PBC specifically called for a lowering of tariffs for domestic users during winter months, proposing incentives to encourage a shift away from gas for heating and cooking. The council’s statement highlighted that these measures are not complex and questioned the existing inertia in implementing them.