Islamabad- Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh and Patron-in-Chief of United Business Group (UBG) as well as former provincial minister S.M. Tanvir stated that industries are shutting down and unemployment is rising due to expensive electricity, gas, high interest rates, heavy taxes, and flawed policies. They emphasized that if a strong economy is desired, industry must be prioritized, as a robust industrial sector is the guarantee of a strong Pakistan. The government should immediately declare an economic emergency in the country.
They asserted that stabilization of energy prices, industry-friendly policies, and restoration of investors’ confidence are the only ways to put the country on the path of economic stability. These views were expressed during a press conference held yesterday at the FPCCI Capital Office.
On the occasion, FPCCI Vice Presidents Tariq Jadoon and Zaki Aijaz, Chairman Capital Office Karim Aziz Malik, Chairman Coordination Malik Sohail Hussain, UBG General Secretary Zafar Bukhtawari, Tariq Sadiq Chairman Founder Group ICCI, Kashif Khokhar President Kasur Chamber, Sardar Mian Nadeem Jalandhar President Nankana Sahib Chamber, Khalid Chaudhry, and others were also present.
Addressing the press conference, FPCCI President Atif Ikram Sheikh said that industries are the backbone of any country’s economy. Unfortunately, Pakistan’s industrial progress is severely under pressure due to various obstacles. Due to energy prices, high interest rates, and other challenges, the economy has reached the brink of destruction. The serious challenges faced by our industries are the most important national issue.
High energy prices have tremendously increased production costs. He said that due to high production costs, our industries are losing their competitiveness in the global market. Frequent changes in policies and additional taxes are hurting the confidence of industrialists. To promote industries, it is essential that the tax system be simple, transparent, and long-term. Atif Ikram Sheikh stated that the high cost of imported raw materials and high interest rates are major hurdles in the way of industrial development. The interest rate should be at a maximum single digit of 9 percent at this time.
Due to these issues, many industries are relocating from here. He further said that the time has come for the government and the private sector to jointly take practical steps for the revival of the economy and industries. Stabilization of energy prices, industry-friendly policies, and restoration of investors’ confidence are the only ways to steer the country toward economic stability. If these issues are not resolved today, the country will face a flood of unemployment, and industries will completely shut down. If we truly want a strong economy, industry must be given priority, because a strong industry is the guarantee of a strong Pakistan.
Speaking on the occasion, UBG Patron-in-Chief and former provincial minister S.M. Tanvir addressed the press conference and said that the World Economic Forum’s report on Pakistan’s economy is extremely alarming. If the economic situation remains the same, we will have to go back to the IMF. In the past few years, 140 to 150 large textile units have closed in the country. The real estate sector has reached the brink of destruction due to taxes and policies. Due to the closure of the real estate business, around 40 related industries have been affected. Due to industries shutting down in the country, millions of people are becoming unemployed.
Pakistan’s energy rates are 12.5 cents, while in the region, they are 6 to 7 cents. Pakistan’s interest rate is more than double compared to other countries in the region. The 10.5 percent interest rate should be reduced to 6 percent by June. He appealed to the Prime Minister to make quick decisions to save whatever industry is left. The industries that have closed or left will not return.
There is 7,500 MW of surplus electricity in the country, for which we are paying capacity charges. FPCCI announces rejection of the electricity concessional package. No industry received bills at Rs. 22 per unit; they are coming at Rs. 35 per unit.
