FPCCI calls for winter tariff relief to support industries

LAHORE: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Saturday called on the government to announce a winter relief package for industries, proposing an electricity rate of Rs20 per unit, warning that without it, industrial areas risk becoming “graveyards”.

Regional Chairman of the FPCCI Zaki Aijaz, alongside Gohar Ejaz and SM Tanveer, emphasised during a press conference the urgency of reducing interest rates without delay.

The FPCCI officials recommended that the government immediately lower the interest rate to 12.5 per cent, with a goal of further reducing it to 5.0 per cent by December 31, 2024. They pointed out that regional interest rates are already in single digits, making Pakistan’s current rate excessively high.

They added that the performance of the agriculture and manufacturing sectors is critical, as strong growth in these sectors would drive the service sector’s success as well. They proposed the establishment of a dedicated task force for the agriculture and manufacturing sectors. The officials expressed optimism, stating that with the right strategies, Pakistan could soon become the world’s fifth-largest economy.

The FPCCI representatives also raised concerns over current economic policies, underscoring the need for stable policies to achieve a 10 per cent annual increase in exports, which they estimated would boost exports to $50 billion within five years. They criticised the policy of currency devaluation, arguing that it hampers economic growth.

On the topic of privatisation, they stressed the need to rebuild confidence within the business community to ensure successful outcomes. Specifically, they advocated for the revival of the privatisation process for Pakistan International Airlines (PIA), suggesting an open bidding process among the five groups previously involved. The officials urged the government to consult with the FPCCI when designing economic policies, stating, “Together, we can make Pakistan an economic superpower.”