Karachi, August 24, 2023 – The Businessmen Group (BMG), representing the trade and industry of Karachi, has extended its full support to Pakistan’s caretaker government.
BMG Chairman, Zubair Motiwala, welcomed the positive gestures from Caretaker Prime Minister Anwar ul Haq Kakar during a meeting with the business community in Karachi.
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Motiwala assured the interim government of the BMG’s cooperation in dealing with the ongoing economic crises and addressing issues related to inflation and the cost of doing business. He appreciated the Prime Minister’s commitment to appoint Shakeel Shah as the PM’s Office Liaison Officer in Karachi, who will facilitate communication between the business community and relevant ministers to resolve issues effectively.
During the meeting, Zubair Motiwala expressed deep concerns about the severe gas crisis affecting industrial zones in Karachi. These zones are currently facing two days of gas load shedding per week, severely impacting production activities, including those of export-oriented industries. He emphasized the urgency of addressing this issue before the upcoming winter season.
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Chairman BMG also highlighted the liquidity crunch faced by the business community due to the high cost of doing business, with the policy rate at 22 percent and high refinance rates. He pointed out that approved previous Duty Drawback of Local Taxes and Levies (DLTL) refunds by the Federal Board of Revenue (FBR) have not been released to date, and there was no provision for DLTL refunds in this year’s budget. He stressed that these issues need to be addressed promptly to restore confidence in the business community and attract foreign investors.
Motiwala noted that inflation and the high cost of doing business, driven by skyrocketing electricity and gas tariffs and recent increases in petroleum prices, have significantly impacted industrial production and exports. He called on the government to provide interest-free loans to small and medium-sized enterprises (SMEs) for the installation of solar panels, which could reduce production costs by 25 to 30 percent.
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The BMG Chairman also appreciated the Caretaker Prime Minister for granting “industry” status to modern warehouses, cold storage, cool chain, and allied industries in response to the Karachi Chamber of Commerce and Industry’s (KCCI) suggestion. Additionally, he commended the Prime Minister’s assurance of providing rebates to industries based on incremental electricity consumption compared to the previous year.
In his remarks, President of KCCI, Mohammed Tariq Yousuf, highlighted the issue of pilferages in electricity and gas supplies, which he identified as a major factor contributing to the current crises faced by the business community and the economy. He stressed the need for immediate and strict measures to address this issue, as it has far-reaching implications for businesses, employment, and poverty levels in the country.
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