FPCCI blames former government for misusing GIDC

FPCCI blames former government for misusing GIDC

Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has blamed the former government for misusing Gas and Infrastructure Development Cess (GIDC) and urged the authorities to urgently address the persistent issue.

FPCCI President Engr. Daroo Khan Achakzai stressed the need for a collaborative approach involving key stakeholders and the FPCCI to resolve this issue, which has been causing uncertainty among both local and foreign investors.

Engr. Daroo Khan Achakzai explained that the GIDC, originally established under the GIDC Act 2015, was intended to generate revenue for the development of gas pipelines and related infrastructure. However, the previous government misused these funds, diverting them towards purposes such as CNG stations, metro projects, and reducing the budget deficit. This misuse of GIDC funds has had a detrimental impact on the cost of doing business for indigenous industries, rendering them uncompetitive in both domestic and global markets and placing them on the brink of collapse.

The President of FPCCI pointed out that the gas prices in Pakistan, when compared to regional competitors such as Bangladesh, India, and Vietnam, are considerably higher. The additional burden of GIDC only exacerbates the challenges faced by the business community in Pakistan, further affecting their competitiveness and profitability.

The GIDC has been a long-standing issue that has garnered significant attention from various stakeholders, including the business community, as it directly impacts the cost structure and financial health of industries that rely on natural gas for their operations. The uncertainty surrounding the GIDC has been a significant concern for both local and foreign investors, as it creates an unpredictable business environment.

In light of these concerns, the FPCCI is advocating for a collaborative and transparent resolution of the GIDC issue. Engr. Daroo Khan Achakzai emphasized that a swift and fair resolution of this matter would not only benefit the business community but also contribute to the stability and growth of the national economy.

Efforts to address the GIDC issue align with broader initiatives aimed at enhancing the ease of doing business in Pakistan and attracting investment. Creating a favorable investment climate is essential to promote economic growth, create employment opportunities, and attract foreign capital.

The FPCCI’s call for the government to address the GIDC issue reflects a shared commitment to fostering a more business-friendly environment. Addressing long-standing issues such as this one is crucial for instilling investor confidence and ensuring a level playing field for all industries.

It remains to be seen how the government responds to this call and what measures will be taken to resolve the GIDC issue. In the ever-evolving global business landscape, regulatory clarity and predictability are essential for attracting investment and promoting economic growth.

In conclusion, the FPCCI’s appeal to the government to address the longstanding issue of the Gas and Infrastructure Development Cess (GIDC) reflects the urgency of resolving a matter that has impacted the cost structure and competitiveness of indigenous industries. By advocating for a collaborative approach involving key stakeholders, the FPCCI seeks to eliminate the uncertainty that has deterred both local and foreign investors. The resolution of the GIDC issue is critical for fostering a business-friendly environment and supporting economic growth in Pakistan.