KARACHI: Leaders of the business community on Thursday urged the government to immediately reduce interest rates and electricity prices, warning that the rising cost of doing business forcing factories shutdown across the country.
Speaking at a press conference at the Federation House in Karachi on Thursday, United Business Group (UBG) Patron-in-Chief S M Tanveer said high power tariffs and interest rates have already led to the closure of around 140 textile units and several paper mills nationwide. He warned that more industries will shut down and unemployment will rise if the situation continues.
Tanveer said Pakistan now has some of the highest electricity prices in the region, noting that the current tariff of 13 cents per unit is set to rise to 15 cents.
He added that elevated interest rates have pushed the government’s annual debt servicing cost to nearly Rs 2 trillion, which, he argued, is being recovered through higher electricity bills.
He criticised the government for making decisions on power tariffs and interest rates without consulting the industrial sector, saying the policy approach is producing negative results.
He also pointed to the ongoing transporters’ strike, warning that it is hurting exports and causing losses to the economy.
Tanveer said no progress has been made on wind and hydel power generation, and questioned how the system would absorb 20,000 megawatts of additional capacity expected by 2035.
Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh said the economy is at a difficult crossroads and cannot grow with such high energy costs.
He said Pakistan has the most expensive electricity in the region and added that the trade deficit widened by 37 percent to 15 billion dollars in the first five months of FY26. He stressed that economic stability depends on affordable energy, lower interest rates and competitive tax policies.
Senior FPCCI office bearers including Senior Vice President Saqib Fayyaz Magon, Vice Presidents Abdul Momin Khan, Asif Sakhi, Asif Inam and Zaki Ejaz, former presidents Mian Nasir Hayat Magon and Senator Haji Ghulam Ali, and other business leaders also attended the press conference.
Copyright Business Recorder, 2025
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