Karachi, November 6, 2024 – Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has urged the government to implement a comprehensive winter package aimed at revitalizing Pakistan’s industrial sector. Sheikh highlighted the pressing need for incentives and cost reductions to ensure industries remain competitive in global export markets.
According to Sheikh, the FPCCI’s primary demand is a reduction in electricity costs for export-oriented industries, suggesting a tariff of Rs. 20 per kWh. He emphasized that high electricity rates have become a significant barrier to industrial competitiveness, especially when compared to regional and international competitors who benefit from lower energy costs.
Sheikh also cautioned against eligibility criteria tied to incremental gas consumption, a condition included in last year’s winter package that excluded numerous export-oriented industries lacking consistent gas supply. “Many units couldn’t benefit from the package due to lacking gas supply connections, which made it impossible to meet such conditionality,” he explained. Sheikh urged the government to design an inclusive package, free of conditions, ensuring equal access to all export-oriented sectors. Such an approach, he argued, would foster exports, create jobs, and spur economic growth.
The FPCCI president assured the government of the industrial sector’s commitment to contributing to Pakistan’s economic growth and export performance. He emphasized that government support would yield a “win-win” situation, allowing industries to boost export volumes, reduce imports, strengthen foreign exchange reserves, stabilize the rupee, and help control the current account deficit.
Sheikh also reiterated several key policy recommendations from the FPCCI, including renegotiating power purchase agreements with independent power producers on a take-and-pay basis, accelerating the privatization of Pakistan International Airlines (PIA), lowering the policy interest rate to single digits, and enacting consistent macroeconomic policies that enhance the ease of doing business.
The FPCCI has laid out an ambitious Vision 2030, aiming to achieve export targets of $100 billion. Sheikh stated, “For Pakistan’s exports to reach $100 billion, adequate government support is essential.” He further expressed that the FPCCI’s Vision 2030 aligns with Pakistan’s broader economic goals, positioning the country for sustainable growth and enhanced global market integration.
With economic indicators suggesting a challenging winter ahead, the FPCCI’s proposals come at a critical time. Sheikh’s appeal to the government reflects a broader call for collaborative strategies that address the energy and production challenges facing Pakistan’s industries, ensuring a stable and growth-oriented economic environment.
