ISLAMABAD - The Islamabad Women’s Chamber of Commerce and Industry (IWCCI) on Sunday lauded the decision of government to phase out power subsidies gradually terming it in the best interest of country. Talking to Chairman Coordination FPCCI Sheikh Abdul Razzaque, VP FPCCI Muhammad Ali, Chairman Media FPCCI Malik Sohail and others, Farida Rashid said that subsidies have not benefited poor but rich while it misbalances the budget.
She said that subsidies leave little funds with government to spend of public welfare, it boosts demand while reduces investment in renewables.
Subsidies also contributes to social injustice, discourages private sector and push up the global warming, she added. She said that losses of the power subsidy have reached to an extent that it has become an issue of national security.
At the occasion, Sheikh Abdul Razzaque said that different national are paying around two trillion dollar in power subsidies which if abolished will reduce global demand and decrease global warming by 13 per cent.
Last year our oil import bill was $14 billion which will touch mark of $50 billion in seven years, enough to leave Pakistan bankrupt, he said.
He said that country will be unable to cope with Rs 500 billion circular debt in presence of power subsidies which is deterring local and foreign investors.
Thar holds 99 per cent more energy than whole gas reserves of Pakistan put together but the speed of development is frustrating, he observed. He said that plight of poor of the country must be considered while abolishing subsidies.
The masses and business community will soon see the positive impact of the decisions of the government which are presently viewed by some as unfavourable, remarked Sheikh Abdul Razzaque.