Punjab’s industrial community raised strong objections on Monday after several power distribution companies including IESCO, FESCO and LESCO requested a new increase in base electricity tariffs.
Industrial groups said the proposal is unjustified and could severely damage the already struggling manufacturing sector, especially textile exporters.
Business associations noted that electricity prices have already climbed to record levels, while many factories have reduced operations or shut down due to high costs.
They questioned why Nepra is entertaining more tariff hikes when power consumption is dropping and industries are unable to survive under current rates.
The Pakistan Hosiery Manufacturers and Exporters Association (PHMA) warned that the new tariff rebasing and higher distribution margins would hit Punjab’s exporters the hardest.
They pointed out that Pakistan’s energy rates are now higher than those in India, China and Bangladesh, making it difficult for local companies to compete globally.
PHMA leaders said manufacturers are already burdened by high electricity, costly RLNG and rising production expenses. They cautioned that further increases would force more small and medium units to close.
They also criticized the continued provision of free electricity to certain elite groups, arguing that ordinary consumers and industries end up paying the price.
Industry representatives said Discos should fix their losses, improve recoveries and manage costs instead of frequently seeking tariff increases.
They added that the purpose of reforms was to improve efficiency but performance has not improved despite repeated price hikes.
Manufacturers warned that if the proposed tariffs are approved, Punjab may see a wave of factory closures, falling exports and significant job losses.