Pakistan’s leading business body, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has urged the government to declare an industrial emergency, warning that high energy costs, expensive credit, and heavy taxation are pushing the manufacturing sector toward systemic collapse.
FPCCI President Atif Ikram Sheikh highlighted that industries continue to face electricity bills of Rs. 34–35 per unit, despite repeated assurances of relief. He rejected incremental support packages, noting that promised tariffs of Rs. 22 per unit have yet to reach any industrial segment.
Speaking with S.M. Tanveer of the United Business Group, Sheikh said uncompetitive energy rates, high interest rates, and restrictive taxation have made Pakistani manufacturers globally uncompetitive. The slowdown in real estate has further affected nearly 40 allied industries, deepening economic strain.
FPCCI demanded income tax cuts for industry from 39% to 20%, a maximum 15% tax for salaried individuals, and a reduction in industrial gas prices to Rs. 2,400 per MMBTU from Rs. 3,900 to restore export competitiveness.
Sheikh warned that Pakistani exporters pay electricity tariffs of around 12.5 cents per unit, nearly double those in India, Bangladesh, and Vietnam, driving factory closures, capital flight, and de-industrialisation.
Tanveer added that the textile sector, a backbone of exports, is in crisis with over 100 mills shut. He criticized high interest rates, urging an immediate cut in the policy rate from 10.5% to 9%, with a gradual reduction to 6% over the next three reviews.
FPCCI also called for clearing pending sales tax refunds, moving to a take-and-pay model for independent power producers, and lowering electricity tariffs for export-oriented industries to 9 cents per unit immediately, with a further drop to 7 cents next year.
The FPCCI warned that failing to prioritize industrial policy could trigger rising unemployment, loss of foreign exchange, and long-term damage to national productivity.
