ISLAMABAD: SAARC Chamber of Commerce and Industry former President Iftikhar Ali Malik Sunday urged the government to explore alternative energy source measures that could lead to a shift in the energy mix towards more sustainable options, which might have long-term benefits for energy security and environmental sustainability.
Talking to a delegation of traders led by Muslim Khan Buneri he said, “If industries face higher costs they may resort to cost-cutting measures, including workforce reduction, to maintain profitability,” said a news release issued here.
“It will result in job losses and increase unemployment rates,” he added.
Iftikhar Malik said, “To address the potential negative impacts of increased power tariffs on the economy, the government may need to focus on improving energy efficiency, promoting renewable energy sources, reducing transmission and distribution losses, and implementing targeted subsidies to protect vulnerable sections of society.”
“Higher power tariffs lead to an inflation increase, increasing the cost of production besides mounting inflationary pressures on the economy.”
“Electricity is a critical input for various economic activities, and any changes in its cost can affect industries, businesses, people, and the overall economic growth,” he added.
He said, “Industries that heavily rely on electricity, such as manufacturing, textiles, and chemicals may face higher operating costs due to increased power tariffs.”
“This can impact their competitiveness both in domestic and international markets, potentially leading to reduced industrial production and a decline in exports,” he added.
He said, “SMEs that operate on tight profit margins could be particularly vulnerable to higher power tariffs. It may become challenging for them to sustain operations, leading to reduced investment and affecting potential business.”
He said, “It will deter foreign Investors may be concerned about the increased operational costs, which can negatively impact the inflow of foreign direct investment.”