FPCCI | Pakistan

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Friday warned that Pakistan’s industrial sector was facing a severe crisis due to high energy tariffs and heavy taxation, leading to widespread factory closures and job losses. In December, it was reported that over 100 spinning mills and over 400 ginning factories had become non-operational, triggered by unprecedented taxes, high power tariffs, and a surge in under-invoiced cotton yarn and fabric imports from China and other countries. Speaking at a press conference in Islamabad, President FPCCI Atif Ikram Sheikh said, “Costly electricity has crippled industrial activity, particularly in the textile sector.” “Around 150 large textile units had shut down over the past two years,” he stated. Sheikh urged the government to immediately abolish cross-subsidies imposed on the industrial sector and reduce the policy rate to single digits. He proposed that interest rates be cut first to nine per cent and subsequently to seven per cent to revive ...