Mr. Atif Ikram Sheikh, President of FPCCI, has urged the government to announce a comprehensive, effective, and multi-sectoral winter package for trade and industry to mitigate and overcome challenges in industrial production. He added that the industries are in dire need of facilitation, incentivization, and cost-cutting measures to meet export targets through competitiveness in the export markets.
Mr. Atif Ikram Sheikh informed that the primary demand of FPCCI is Rs. 20 / kWh electricity tariff for export-oriented industries as, at the moment, the biggest contributor to the cost of production and cost of doing business in Pakistan is electricity tariff, which also happens to be the highest in the region and also the highest compared to competitors in the export markets.
Mr. Atif Ikram Sheikh cautioned that any conditional eligibility criteria tied to incremental gas consumption, as was the case last year, would unfairly exclude and neglect many export-oriented industries. He explained that several units did not have gas supply connections last year, making it impossible for them to meet this conditionality.
Therefore, FPCCI demands that the government offer the winter package without conditions – ensuring equal access to all export-oriented industries. This inclusive and transparent approach will boost exports, employment and economic growth. He added that we urge the government to prioritize the well-being of all export industries rather than creating unnecessary discrepancies and exclusions.
Mr. Atif Ikram Sheikh assured the government that trade and industry remain committed to collaborating with the government to promote Pakistan’s economic growth and export competitiveness. He elaborated that it is a win-win scenario; and, support to industries will help the country achieve substantial export growth; import substitution; shore up foreign exchange reserves (FER); stabilize rupee-dollar parity and keep current account deficit (CAD) in check.
The FPCCI President also reiterated the apex body’s demands of renegotiating the power purchase agreements (PPAs) of all independent power producers (IPPs) on a take-and-pay basis, revitalizing the privatization process of PIA, bringing key policy rates down to single digits, and taking far-sighted macroeconomic policy measures to ensure consistency in policies and promote ease of doing business. We at FPCCI have a futuristic but practical Vision 2030 to achieve an export target of $100 billion, and we need adequate governmental support to materialize it, he added.
