KCCI warns of social unrest as businesses feel ignored

KARACHI: President of the Karachi Chamber of Commerce and Industry (KCCI) Iftikhar Ahmed Sheikh has warned of potential social unrest due to government inaction on pressing economic issues.

Sheikh criticized the government’s selective approach to problem-solving, highlighting that forceful protests often yield quicker responses than formal appeals.“Only issues brought to light through strikes or protests seem to get attention,” Sheikh said. “Meanwhile, critical macro issues like high energy tariffs, rising business costs, and excessive taxes remain unaddressed, causing widespread anxiety.”

He pointed to recent examples where protests in Azad Jammu Kashmir led to immediate reductions in electricity tariffs and strikes by flour mills and petrol dealers secured concessions.

However, Sheikh lamented the lack of progress on the business community’s demands, including renegotiating agreements with independent power producers (IPPs).“It is really worrisome that the KCCI and several other trade bodies along with chambers of commerce from all over Pakistan have been constantly issuing appeals, holding press conferences, and issuing media statements from time to time so that the government could be convinced to take steps to provide relief but unfortunately, the business community continues to wait for the desperately needed relief,” he added.

While acknowledging Prime Minister Shehbaz Sharif’s engagement with the KCCI, Sheikh criticized the finance minister’s repeated use of the International Monetary Fund (IMF) as an excuse for inaction, adding that the minister rarely replies to letters sent by the KCCI.

“We urge the government to take these concerns seriously before it is too late,” Sheikh concluded, emphasizing the mounting pressure on businesses.Sheikh described the growing sentiment within the business community favouring strikes and protests as appeals, press conferences, and demonstrations have borne no fruit.

“The KCCI firmly opposes disruptions,” Sheikh clarified. “We encourage our members to remain calm while we pursue solutions through dialogue. However, the government needs to engage in negotiations quickly as frustrated businessmen, small traders, and exporters may soon resort to more drastic measures.”

He reiterated the KCCI’s opposition to strikes due to their negative impact on the already struggling economy, particularly the underprivileged population.“Ignoring these problems could lead to capital flight as businesses explore options outside Pakistan,” Sheikh warned.

He emphasized the urgency of “extensive relief measures” to prevent a complete economic collapse. He warned of potential social unrest if a large number of unemployed and impoverished people take to the streets in desperation.“The government must choose dialogue and find solutions to safeguard our industries, our economy, and the well-being of our people,” Sheikh concluded.