S.M. Tanveer, a senior leader in FPCCI and Patron-in-Chief of UBG, has raised strong concerns about Industrial Power tariffs in Pakistan. He demands the immediate removal of cross-subsidy burdens from these tariffs.
Industrial Power currently carries a heavy cross-subsidy load. The extra cost ranges from Rs 4.5 to Rs 7 per unit. This adds up to a massive Rs 131 billion burden each year.
Tanveer explained that this subsidy adds nearly 20 percent to already high electricity costs for industry. Many factories struggle to survive under this pressure. Some units face closure or long-term reduction in operations.
He pointed out a key issue. The number of protected consumers has almost doubled in recent years. Yet the government has not used fiscal measures to support them. Instead, it shifts the burden onto Industrial Power users.
Industry remains the only sector that pays bills on time. It consumes large amounts of electricity and creates jobs. Tanveer said treating industry as a balancing tool ignores its vital role in the economy.
The Power Ministry often highlights better performance and sector stability. Tanveer questioned why a competitive tariff of around 9 cents per unit has not been achieved. If reforms are working, benefits should reach the productive sectors first.
He linked this to national goals. The government wants higher exports and an exit from the IMF program. Tanveer warned that weakening industry makes these targets impossible. No country grows by making its exporters uncompetitive.
Tanveer also criticized the load factors in recent tariff packages. He said they lack technical or regulatory basis. They seem borrowed from theft and detection frameworks. This approach will not boost real demand. It may only shift consumption within industry and create more distortions.
The FPCCI leader made a clear appeal. He urged the government and the Minister for Energy Power Division to act now. Cross-subsidy must be removed from Industrial Power tariffs without delay.
Protecting industry is not a favor. It is an economic necessity for Pakistan. Removing this burden will help restore competitiveness and support sustainable growth.
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Tanveer stressed that industry needs fair tariffs to thrive. This step will benefit exports, jobs, and overall economic stability in the country.
