FPCCI urges govt to announce comprehensive winter package for export-oriented industries

KARACHI: President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Atif Ikram Sheikh has urged the government to announce a comprehensive, effective and multi-sectoral winter package for trade and industry to mitigate the challenges facing industrial production.

Sheikh emphasised that industries urgently need facilitation, incentivisation, and cost-cutting measures to meet export targets and remain competitive in international markets. He outlined that the FPCCI’s primary demand is a reduction in electricity tariffs for export-oriented industries to Rs20 per kWh. Currently, electricity tariffs represent the biggest contributor to production costs and the cost of doing business in Pakistan. Furthermore, Pakistan’s electricity tariffs are the highest in the region and more expensive than those of its competitors in export markets.

Sheikh also cautioned that any conditional eligibility 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 lacked gas supply connections last year, making it impossible for them to meet such conditions.

In light of this, the FPCCI demands that the government offer the winter package without any conditions, ensuring equal access for all export-oriented industries. “This inclusive and transparent approach will boost exports, employment, and economic growth,” Sheikh said. “We urge the government to prioritize the well-being of all export industries, rather than creating unnecessary discrepancies and exclusions.”

He further assured the government that trade and industry remain committed to collaborating to promote Pakistan’s economic growth and enhance export competitiveness. “It’s a win-win scenario,” he said. “Support for industries will help the country achieve substantial export growth, promote import substitution, bolster foreign exchange reserves, stabilise the rupee-dollar parity, and control the current account deficit.”

Sheikh also reiterated the FPCCI’s other key demands, including renegotiating power purchase agreements with independent power producers (IPPs) on a take-and-pay basis, revitalising the privatisation process of PIA, bringing the key policy rate down to single digits, and implementing long-term macroeconomic measures to ensure policy consistency and promote ease of doing business. “The FPCCI has a futuristic yet practical Vision 2030, with an export target of $100 billion, and we require adequate governmental support to achieve this goal,” he concluded.