KARACHI: SM Tanveer, the patron of the United Business Group (UBG) has expressed grave concerns over the unprecedented price hikes in electricity, petrol, gas, and essential food items, which have made it difficult for the middle class and the poor to afford basic necessities.
The federal budget for the current fiscal year has forced industries to shrink, with reports indicating that many are shutting down shifts. In Karachi, one factory administration has even advised employees to seek employment elsewhere.
Tanveer emphasized that this situation is detrimental to the national economy, urging the government to collaborate with all industrial and export sectors to resolve these issues.
During a meeting with a large delegation of UBG members in Karachi, which included Ahmed Chinoy, Sheikh Umar Rehan, Mian Zahid Hussain, Ghazanfar Ali Khan, Nadeem Kushti Wala, Ali Haider, Rafiq Godil, Saeeda Bano, Maryam Chaudhry, FPCCI Vice Presidents Amanullah Paracha, Zaki Ijaz, former Vice President Khurram Ijaz, and others, Tanveer highlighted the severe impact of the federal budget on various sectors.
He pointed out that the textile sector, garment industry, petroleum dealers, flour mills, pharmaceuticals, travel agents, and rice exporters are all fearful. The alarming reports of industrial shutdowns due to exorbitant electricity rates suggest an impending wave of unemployment.
Tanveer noted that the industry is shrinking, exports are declining, and cement sales dropped by 12.58% in June 2024. The construction sector is already distressed due to reduced business activity.
He urged the government to take necessary steps to reduce construction costs and called the budget extremely disappointing for exporters who generate the most foreign exchange for the country.
Reiterating his demand, Tanveer called for the immediate cancellation of agreements with Independent Power Producers (IPPs), which are being paid despite not generating or supplying electricity.
He advocated for obtaining electricity from cheaper sources without any capacity charges, stating that the 2 trillion unfair capacity charges have paralyzed the economy. Tanveer further criticized the excessive taxes imposed on industries in the budget, which they cannot afford.
The collection of heavy taxes along with high electricity bills has troubled small traders as well. In recent days, a significant number of industries in Karachi have started shutting down because they cannot operate profitably under the burden of expensive electricity, gas, interest rates, and production costs coupled with excessive taxes.
He urged the government to adopt austerity measures, reduce public expenditures and privileges, and reflect these measures in the federal budget.
Copyright Business Recorder, 2024
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