ISLAMABAD: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) urged the government to formulate 10-year industry policy focusing industrial growth, employment generation, reducing power tariff and minimising taxation.
Addressing a press conference FPCCI President Atif Ikram flanked by SM Tanveer, patron-in-chief of United Business Group (UBG), Member National Assembly (MNA) Mirza Ikhtiar Baig and others here on Tuesday, the business community also urged the government to bring down rate of interest in single digit as the rate of inflation clocked at 1.5 percent has already touched lowest mark of past seven years.
They said that providing incentives to the business community, especially industries are critical to enhancing the country’s exports.
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Speaking on the occasion, Ikram said that export targets can be achieved only by solving the energy crisis, bringing down the rate of interest, and forming long-term economic policies for the business community. He acknowledged that so far the government has reduced the price of electricity by four to five rupees, but still electricity tariff in Pakistan is highest in the region as in other regional countries power tariff was around eight cents while in Pakistan it was 15 cents. He urged the government to review interest rate by keeping in view current inflation rate which has dropped to 1.5 percent; therefore, the policy rate should be single digit and at least eight percent.
Ikram said that the representatives of the business community have met with the finance minister and presented him the charter of economy. He said that the charter proposed major policy changes, including reforms in specialised civil services, greater reliance on solar and wind energy, and stable exchange rates to boost exports and regulate imports. It also called for a uniform gas pricing structure for industries and encouraged regional trade expansion. Additionally, FPCCI suggested that state-owned enterprises (SOEs) be transferred to employees or privatised, along with converting pension funds into equity, he said.
Patron Chief UBGSM Tanveer said that the country’s economy is moving in a positive direction but the country needs dollars, if energy prices are not brought in line with the region, then it will not be possible to increase exports and break the cycle, there are only two ways to bring dollars, either take the cycle and go to the IMF, the other way is to restore the industry and increase exports.
He said that owing to ill economic policies, especially high power tariffs, taxation and interest rate, over the past few years, hundreds of industrial units valued Rs500 billion have shut down and around one million people have lost their jobs.
The government is unnecessarily delaying the announcement of reduction in electricity prices. There should be a reduction of 10 rupees. The government has so far cancelled the contracts of 14 IPPs, revised 6, these measures will have an impact of Rs2.30 per unit on the electricity rates. He said that power tariff for industry should be fixed at Rs26 rupees per unit. He questioned the State Bank of Pakistan for not reducing the interest rate as per reduction in inflation. He said that the economic mangers of the country need to formulate economic policies in closed collaboration with business community.
Member of the National Assembly Mirza Ikhtiar Baig said, on this occasion that the task force formed in the name of reforms has put its hands on the solar system, electricity was being bought at 27 rupees per unit, now the rate has been fixed at 10 rupees.
Vice President Tariq Jadoon said that more and more industry should be built in the country, you are shutting down, exports will increase only when the industry runs. The decrease in inflation is not affecting the market; the prices in the market are maintained.
Copyright Business Recorder, 2025
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