Industrialists in Karachi have called on the government to implement reforms aimed at lowering the cost of doing business, as escalating petrol and diesel prices continue to strain the economy. During a press conference, representatives from the Karachi Chamber of Commerce and Industry (KCCI) outlined the difficulties faced by the business sector amid ongoing geopolitical tensions in the Middle East.
Zubair Motiwala, Chairman of the Businessmen Group, advocated for the introduction of a freight subsidy to help offset rising transportation expenses while regional instability persists. He proposed that such subsidies be phased in gradually, with the government absorbing the additional costs borne by traders. Motiwala cautioned that without reducing business expenses, economic recovery would remain elusive. He also expressed optimism that the ceasefire between the United States and Iran would hold, noting that enhanced relations with Iran could yield economic advantages for Pakistan.
Highlighting further challenges, Motiwala criticized the levies imposed on RLNG, describing them as punitive for businesses, and reiterated the need for freight subsidies to provide relief. He additionally urged the government to reduce taxes on solar energy, emphasizing its role in lowering operational costs for industries.
Rehan Hanif, President of KCCI, stressed the importance of bolstering economic ties with neighboring countries rather than depending predominantly on Western markets. He pointed out that Pakistan’s industrial growth is heavily reliant on gas availability and noted that the completion of the Iran-Pakistan gas pipeline could offer more affordable energy. Hanif underscored the severe difficulties industries have faced recently and appealed to Prime Minister Shehbaz Sharif to seriously consider the business community’s recommendations. He revealed that nearly 80% of export orders are lost due to high costs, clarifying that the industry seeks structural reforms rather than subsidies to reduce expenses.
Former KCCI President Jawed Bilwani emphasized the necessity of investing in alternative energy sources. He also called for expanding the storage capacity of the Trading Corporation of Pakistan (TCP) to enhance the country’s food security.
Meanwhile, petroleum prices are anticipated to decrease by Rs30 to Rs60 per litre following a decline in global oil prices after the ceasefire between the United States and Iran. The Prime Minister has issued special directives to ensure that the benefits of lower international oil prices are passed on to the public. The finance and petroleum ministries have begun reviewing potential reductions in fuel prices to reflect the global market changes.
