KARACHI, Oct 25: A delegation of Karachi businessmen in their meeting with President Asif Ali Zardari in Islamabad on Saturday sought immediate withdrawal of recent increase in power tariff for domestic, commercial consumers, small factories (up to 40 KW) as well as medium and large industries.

In a release faxed to Dawn office, the KCCI informed that its delegation was led by Siraj Kassem Teli; the present President Anjum Nisar, past presidents Haroon Faruki and Zubair Motiwala who in their meeting with President Zardari raised the issues of 31 per cent increase in gas tariff and recent unusual raise in electricity billing which has virtually crippled Karachi business.

The delegation also informed the President of serious implications of monetary policy and pleaded withdrawal of 35 per cent letter of credit margin on import of industrial raw material.

A plea was made for giving representation to the KCCI on State Bank of Pakistan, National Electric Power Regulatory Authority, Oil and Gas Regulatory Authority, Trade Development Authority of Pakistan and Export Processing Zones.

Immediately Mr Motiwala was given a representation on the board of Oil and Gas Regulatory Authority while Mr Teli was authorised to nominate KCCI representatives on other institutions.

Mr Zardari assured the leaders of the business community that all other issues discussed during the meeting would be given due consideration for their early resolution as the government is serious to provide maximum relief to all sectors of the society, including business community of Karachi, which is contributing a lion’s share towards national revenue collection and economy of the country.

The business community sought president’s intervention to inject the confidence and boost the morale of the private sector by immediately addressing the issues.

Regarding gas, they discussed the recent increase of 31pc in gas tariff and stressed that the increase be revisited in consultation with the private sector and the formula of calculation from exploration, wellhead and cross subsidisation up to the consumer prices must be reviewed to rectify inequities.

The delegation was of the view that time is essence and to avoid production losses, an immediate decision is needed.

The government will be announcing in next two to three days its decisions on gas and electricity tariff which has put Karachi’s small and big business under a lot of stress.

MONETARY POLICY: During the meeting, monetary policy also came under discussion for providing incentives to overseas Pakistanis to bring money into Pakistan by matching kerb rate, reduction of mark-up by four to six per cent through making the banks reduce their spread which is seven per cent to three per cent as nowhere in the world it is more than two to three per cent and reduction of discount rate by State Bank of Pakistan.

About withdrawal of 35pc L/C margin for industrial raw material, the delegation was of the view that time is running out and industrial sector is facing hardship.