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Hubco asked to reduce tariff

LAHORE: Business community and industrialists across the country described the Hubco Power agreement as a sugar coated 'Poisonous' capsule for national economy and demanded of Hubco authorities to make its tariff affordable for sustainable industrial growth.

Former Vice President and Zonal Chairman, Federation of Pakistan Chambers of Commerce and Industry, Iftikhar Ali Malik when contacted said that power tariff of Hubco is much higher than the tariff offered by 12 IPPs and our national economy and indigenous industry can never afford such exorbitant tariff.

He said that new term of "Deemed Equity Injection" whereby returns being claimed for periods prior to the actual injection of any equity/capital and one-sided amendments are not feasible in the larger national interest. He categorically said that national interests are very dear to business community and would never allow any force to play with the destiny of the country.

He said that Pakistani products can also not compete the international market in view of high power tariff which is a well conceived conspiracy against Pakistan hatched by unscrupulous elements having vested interest. He said that high power tariff tentamounts to aggravating economic woes of the country.

He said that single Cent increase means over $3 billion (Pak Rs 162 billion) financial loss to country over the life of the project. Wapda has been made to pay above 11 cents per kwh during the 1997-98 without any visible justification for this unaffordable increase.

Its impact is ultimately going to be passed on to the common consumer in shape of a possible hike in the already very high power tariff.

He called upon the Hubco authorities to reach an understanding with Wapda over reduction in power tariff and enter into next round of negotiations seriously instead of exerting foreign pressure which is in the interest of both sides. APP