Business hours to increase by 30 minutes? Power division warns of Rs. 5 electricity cost hike

A Senate subcommittee has recommended an initial 30-minute increase in Pakistan business hours, while the Power Division has opposed extending commercial timings warning that the move could increase electricity demand and raise power generation costs.

ISLAMABAD: A Senate subcommittee has recommended an initial 30-minute increase in Pakistan business hours, while the Power Division has opposed extending commercial timings warning that the move could increase electricity demand and raise power generation costs.

The recommendation was made during a meeting of the Senate Standing Committee on Finance and Revenue’s subcommittee, chaired by Pakistan Peoples Party (PPP) Senator Talha Mahmood.

The business community argued that government revenues from income tax and sales tax can only increase when businesses remain operational for longer hours. Representatives stressed the need to gradually restore business timings to support commercial activity and economic growth.

However, officials from the Power Division raised concerns over the impact of longer business hours on the country’s electricity supply. According to officials extending commercial timings would require an additional 600 megawatts (MW) of electricity.

The Power Division also warned that if furnace oil-based power plants have to be operated to meet the additional demand, the fuel cost of electricity could increase by around Rs. 5 per unit.

Officials further informed the committee that Pakistan currently has only around one day’s supply of LNG available. They warned that importing spot LNG cargoes to meet additional power requirements could make electricity even more expensive.

Despite the concerns raised by the Power Division the subcommittee recommended an initial 30-minute increase in business hours as part of efforts to gradually normalize commercial activity.

The meeting also reviewed several other issues affecting Pakistan’s economy and business sector, including industrial relocation, Federal Board of Revenue (FBR) governance dual citizenship among officials, industrial policy and measures to facilitate the business community.

FBR officials told the committee that several confidence-building measures had been introduced in consultation with business representatives. They also said FBR Chairman would establish a camp office in Karachi during the first week of every month on the prime minister’s instructions while a two-day camp office is also planned in Lahore.

The subcommittee recommended renegotiating an International Monetary Fund (IMF) condition concerning the phased closure of Export Processing Zones and Special Economic Zones by 2035. The committee stressed that Pakistan’s industrial and investment interests should be considered.

The committee also received briefings on battery energy policy electric vehicle charging infrastructure, housing, tax-related issues and cartelization.

It further recommended introducing facial recognition technology for taxpayers whose fingerprints cannot be verified and directed the FBR and NADRA to resolve the issue urgently.

The committee emphasized that a business-friendly regulatory environment is essential for investment, industrial development and sustainable economic growth in Pakistan.