KP Business Community Advocates for Fixed Rates

Recently, the business community in Khyber Pakhtunkhwa has been advocating for the establishment of fixed electricity and gas rates for the province, similar to the model in Azad Jammu and Kashmir. This initiative aims to drive sustainable economic growth, enhance prosperity, and promote progress in the region.

Business leaders are pushing for the adoption of AJ&K's electricity rate formula and a 50% reduction in income and sales taxes. They are urging the government to pass legislation through parliament to ensure legal protection and constitutional backing for K-P, paving the way for industrialization and the creation of new business and job opportunities.

Despite Khyber Pakhtunkhwa's surplus electricity and gas production at low costs compared to demand, the province faces challenges due to purchasing electricity at inflated rates, leading to a slowdown in industrial and business activities. The disparity in gas distribution, with KP producing more than its demand yet facing equal charges as other provinces, further exacerbates the situation.

Article 158 of the constitution, which prioritizes the rights of provinces with natural resources, has not fully benefited KP, a net gas exporter. The current pricing mechanisms for gas and electricity are considered unfair, limiting the economic potential of the province.

The mounting power dues in KP, totaling Rs1.5 trillion, pose a significant obstacle to economic growth. Addressing these outstanding payments could unlock development opportunities, prevent industrial decline, and safeguard against potential job losses.

The business community is also advocating for a review of Independent Power Producer agreements to tackle the circular debt issue and proposing concessional loans at lower interest rates to stimulate economic activity. By addressing these critical issues, Khyber Pakhtunkhwa aims to unleash its full economic potential and create a conducive environment for growth and development.

The push for fixed electricity and gas rates in Khyber Pakhtunkhwa reflects a crucial step towards fostering sustainable economic growth and prosperity in the region. By addressing pricing disparities, resolving outstanding power dues, and implementing supportive measures, KP aims to create a conducive environment for business expansion, job creation, and overall development.