Industrial issues: all Pakistan Chambers' Presidents' Conference from March 14

Law and order situation, deepening energy crisis and poor economic policies have left the industrialists with no option, but to close the units, said Ali Raza Saeed Shah, President, Rawalpindi Chamber of Commerce and Industry (RCCI) here on Monday.
"To discuss the problems RCCI has decided to call 3rd All Pakistan Chambers Presidents Conference on March 14 - 15," Ali Raza said while addressing a press conference at Chamber House. Senior Executives, former presidents and business leaders of the area were present on the occasion.
"Around 40 Chambers' Presidents from all over Pakistan will take part in the moot and deliberate as to how the business community should cope with the existing situation," RCCI Chief said. He said that prevailing energy crisis has badly affected the industrial sector and frequent rise in prices of petroleum products almost destroyed the industry. "1332 industrial units have been closed due to energy shortage and if the situation prevail there is chance to around 1600 more industrial units would be closed, which would leave over 1.6 million people jobless," Ali Raza maintained.
He revealed to media that during last three years, the present government has increased electricity tariff by 120 per cent, gas prices by 54 per cent, while Petroleum prices by 27 per cent. Inflation rose to 15.48 per cent and the consumer price index (CPI) ratio stood at 13.9 per cent in January 2011.
He said that owing to bad law & order, foreign investment has reduced to zero per cent and local investors are shifting their businesses to the neighbouring countries and till date almost 20 industrial units have been shifted to Bangladesh. President RCCI called the government economic policies as ineffective saying that the Government has not consulted the stake-holders during the policy making process, adding that it is must to take business community into confidence before drafting any policy related to business.
He said that increase in interest rate is the second major cause of low investment, as interest rate in Pakistan is 14 per cent, which is higher than other countries like Bangladesh 5 per cent, Sri Lanka 7.5 per cent, Japan, 3 per cent, US, 0.25 per cent, UK 0.50 per cent, Malaysia 0.3 per cent and in Thailand 1 per cent. Cost of doing business in Pakistan is very high, he said.
Responding to a question about imposition of Reformed General Sales Tax (RGST), Ali Raza said that in the present form it is not possible for the business community and the country as well to pay RGST. Government should revisit its policy of over-burdening the tax payers and use efforts to broaden the tax net by taxing the sectors, which are not paying, he opined. Ali Raza said that in the third all Pakistan Chambers Presidents Conference all the issues including industrial policy will be discussed and a joint declaration would be issued.