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High cost of business hurting economy: PIAF

LAHORE: The Pakistan Industrial and Traders Associations Front (PIAF) has said that the cost of doing business has increased manifold, leading to not increasing the exports rather decline in exports.
PIAF chairman Mian Nauman Kabir on Monday appreciated the government for cut in energy tariff for the value-added exporting industry, urging the authorities to also extend this facility to the local industry to curtail the inflation, as increased cost of doing business is hurting it severely. He also appreciated the government’s commitment to disburse outstanding refunds of exporting industry. Chairman PIAF said that the Federal Minister has assured business leaders to disburse over Rs100 billion under sales tax refund claims in shortest period. He hailed the government for fulfilling its commitment regarding payment of stuck refunds of exporters.

He highlighted that gas tariff per MMBTU in dollar terms in Bangladesh is $3.35; in India is $4.66 and in Vietnam is $6 and in Pakistan $7.59 including Rs 200 GIDC (Gas Infrastructure Development Cess) which is 126 percent higher than Bangladesh; 62.87 percent higher than India and 26.5 percent higher than Vietnam. Commenting on electricity tariff, he stated that electricity tariff per KHW in Bangladesh is $0.09; in India is $0.09 and in Vietnam is $0.08 and in Pakistan is $0.11 which is 22.2 percent higher than Bangladesh & India and 37.5 percent higher than Vietnam.
Therefore he demanded that gas tariff for industry should be reduced at least by 10 percent.

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