Power Tariff Reduction to Boost Economic Growth: Expert Opinion

Javed Iqbal Khattak, CEO of JK Consultants and a distinguished expert in the SME sector, has lauded the recent decrease in electricity tariffs for both residential and industrial users, noting its potential to stimulate economic and industrial expansion nationwide.

In a statement released on Sunday, he emphasized that while the tariff reduction is a welcome step, further measures are essential to enhance the nation’s competitiveness relative to regional peers like India, Bangladesh, Sri Lanka, and China. He pointed out that Pakistan’s power tariffs remain elevated, hindering its competitive edge.

However, Khattak acknowledged that the prevailing political stability has facilitated the tariff reduction, signaling positive momentum for attracting investment. He also observed that escalating energy costs have driven the industrial sector towards alternative energy sources, leading to a surge in solar equipment imports and consequently, an increase in Pakistan’s import bill.

Khattak further advocated for technological advancements in the mining and mineral sector to bolster the country’s economy. He stressed that modernization of mining and processing techniques is crucial to avoid resource wastage and maintain global competitiveness. He cautioned that the current lack of modern technology leads to the inefficient exploitation of finite mineral resources, emphasizing the need for value-added processes and advanced technologies in both mining and processing.

As the former Chief Executive of Khyber Pakhtunkhwa Economic Zones Development and Management Company (KP-EZDMC), Javed Iqbal Khattak asserted that incorporating modern technology would yield dual benefits: fostering joint ventures and promoting value addition within the sector. He urged the government to provide incentivized loans to attract investment in the mineral sector, recognizing its reliance on heavy machinery and substantial capital. He further encouraged governmental participation to augment national exports and generate foreign exchange.

Regarding industrial development, Khattak highlighted the potential of the China-Pakistan Economic Corridor (CPEC) to transfer Chinese technology and create employment opportunities for the local population. He acknowledged the immense potential of CPEC but lamented the sluggish progress in energizing the Rashakai Special Economic Zone, the pioneering operational model under the corridor, due to protracted procedures.