Government Removes Peak-Hours Electricity Rates, Giving Relief to Industries

On Tuesday, a considerable relief package in terms of electricity tariff was given to small, medium, and general industries by Prime Minister Imran Khan. The purpose of this act is to boost more manufacturing and higher power consumption. 

The federal cabinet held a meeting earlier today, after which the Prime Minister and his team spoke to the nation. 

Beginning his address, the premier first explained that electricity was expensive in the country because the contracts, which were signed previously for generating power, had rather deleterious effects for the state.

The Prime Minister said that he and his team, following the principle that wealth generation is positively related to exports, tried to increase exports right after assuming the charge. 

The package would help increase exports and lift up the industries at home as well, said the premier. 

Starting from November 1, electricity will be provided to small and medium industries at 50 percent of the current rate for the use of additional power. The relief package will be extended through eight months, till June 30, 2021.  

Additional power, however, will be provided at 25 percent of the rate to all industries for the next three years, the premier stated. 

He continued that the services industry was most affected by the Covid-19 pandemic, adding that industrialization must be brought to the country so that wealth can be generated which in turn would help the country get rid of the load of debt. 

Concluding his address, Prime Minister Imran Khan requested the nation to strictly adhere to the standard operating procedures (SOPs) to curb the rise of the virus, appealing people to wear a face mask, especially in public places. 

He said that if the coronavirus outbreak worsens in the country, industries will not be shut down. The things not having any impact on the businesses will be closed down but the industries will be allowed to operate with SOPs. 

Hammad Azhar, Minister for Industries and Production, said that the team was instructed by the premier to come up with a strategy that can be helpful in reducing the production cost for industries so the economy can be kept running and in generating job opportunities. 

Talking about the package, the minister said that this decision by the PTI government was a difficult one that the federal cabinet has approved of. 

He said that firstly no peak hours will be there as opposed to formerly when the industries were charged 25 percent more for the peak hours that continued from 7 pm to 11 pm. 

And then a discount of 50 percent on additional usage of electricity till June will be given to industries that have B-1, B-2, and B-3 connections. 

Thirdly, a discount of 25 percent will be given to all industries for the coming three years on the consumption of additional power.