ISLAMABAD: Traders’ bodies on Saturday urged the federal government to reconsider its decision to hike gas tariffs to address the concerns of the business community.
Islamabad Chamber of Commerce and Industry (ICCI) President Ahsan Zafar Bakhtawari and Karachi Chamber of Commerce and Industry (KCCI) President Iftikhar Ahmed Sheikh made the demand during a meeting held here, a press release said.
They expressed dismay that the federal cabinet approved a 67 percent hike in gas tariffs as it would increase production costs, curtail industrial activities and severely damage exports.
During the meeting, they urged the government to take firm measures to ensure competitive power tariffs for industry to boost industrialization and exports.
The ICCI president said Pakistan’s economy is in deep trouble as the manufacturing sector is still struggling to recover, textile sector exports have declined by around 3 percent in July-January 2023-24 and foreign exchange reserves of $8 billion are not enough to they only cover 6 weeks of importation.
He said that Pakistan needs USD 22 billion in external financing in 2024-25 to meet its financial needs.
To meet these challenges, Pakistan urgently needs to boost industrialization and exports. However, repeated increases in electricity and gas rates have greatly increased the cost of doing business, hurting manufacturing activities and making exports uncompetitive in the international market.
The KCCI President said that the industry of Karachi was demanding a reduction in gas rates to improve industrial activities and increased gas rates would cause more problems for the industry which would slow down the country’s economic growth.
He called for the new government to set utility tariffs for the next 10 years in consultation with the private sector to allow for better growth in business activities and economic recovery.
Zafar Bakhtawari, former president of ICCI and general secretary of UBG emphasized that the government should privatize all loss-making power companies to reduce their burden on the exchequer and improve their performance.
Both chambers called for political stability in the country, which is a key requirement for achieving economic stability.
They urged that the new government should give top priority to promoting ease of doing business to make Pakistan a hub for trade and investment activities and enable it to become a strong economy.
Both chambers agreed on close cooperation in solving key problems of the business sphere and creating a favorable business environment.
Muhamad Ejaz Abbasi former president of ICCI, Maqsood Tabish, Khalid Chaudhry and others were present on the occasion.
