In recent statements, key figures from the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) have highlighted pressing issues affecting the nation’s economic development. Atif Ikram Sheikh, President of FPCCI, emphasized that Pakistan’s economic recovery is intricately linked to enhancing industrial development and productivity. He identified high electricity tariffs, a heavy tax burden, and rising loan costs as significant barriers to attracting investment.
Sheikh remarked that the challenges surrounding electricity prices extend beyond mere tariffs, necessitating comprehensive reforms in the power sector. He criticized the government’s incremental package, arguing that electricity tariffs for industries should align with previous government commitments—specifically, being set between 8 and 9 cents per unit.
Saqib Fayyaz Mago, Senior Vice President of FPCCI, added that Pakistan’s real GDP growth is currently trailing behind population growth, presenting a concerning outlook for the country’s economic future. He reported a staggering 37% increase in the trade deficit, which has risen to $15.47 billion in just the first five months of the 2025-26 fiscal year.
Addressing the textile industry, SM Tanveer, Patron-in-Chief of the United Business Group (UBG), revealed that 140 textile units have closed down. He expressed alarm over a 13% rise in imports, suggesting the current account deficit may worsen.
Tanveer also highlighted the competitiveness issue faced by Pakistani industries due to high electricity rates compared to neighboring countries. He pinpointed three key factors contributing to exorbitant electricity costs: excess generation capacity, low demand, and mismanagement within Distribution Companies (DISCOs).
Despite these challenges, Tanveer welcomed the government’s winter package for industrial consumers, though he noted reservations regarding the terms related to incremental consumption. He urged a review to ensure that the package adequately supports the industries in need.
Economic stakeholders continue to call for reforms and strategic measures to navigate these challenges and bolster Pakistan’s industrial sector for sustained growth.
