LAHORE: FEB 22 /DNA/ – The Pakistan Furniture Council (PFC) has expressed concern that recent energy tariff relief measures, aimed at supporting industrial competitiveness, are not delivering meaningful benefits for a large segment of the industrial sector, including furniture manufacturing.
While the government’s incremental package reduced electricity tariffs by Rs4.04 per unit for industrial consumers, PFC Director Shahbaz Aslam said higher fuel costs and quarterly adjustments have significantly reduced the effective relief, limiting the intended impact on production costs and export competitiveness.
Shahbaz Aslam noted that the government reported benefits reaching 127,686 industrial consumers over December and January 2025-26, with a cumulative financial relief of Rs12.125 billion. However, PFC highlighted that the reduction mostly benefitted smaller or non-operational industries, while larger manufacturers and those in the B3 and B4 categories, which contribute significantly to production, were unable to fully utilise the package. The furniture sector, in particular, reported minimal relief due to ongoing energy cost adjustments that offset much of the announced tariff cuts.
The PFC Director emphasized that while the package was designed to improve industrial competitiveness and support export-oriented businesses, the practical benefits for energy-intensive sectors like furniture production have been limited. The recalibration of fuel cost adjustments and the shift of tariff reference cycles from fiscal to calendar year, combined with quarterly revisions, have diluted the impact, leaving industrial units with only a fraction of the intended savings.
The council urged the government to consider more targeted and sector-specific energy relief measures to ensure meaningful support for industries that contribute to export revenue and domestic employment. Furniture manufacturers, like many other export-oriented businesses, operate on tight margins and rely on predictable energy costs for planning, pricing, and maintaining international competitiveness.
Highlighting the challenges faced by manufacturers, the council also noted that volatility in electricity tariffs has affected production schedules and procurement decisions, creating uncertainty for both domestic and international orders. PFC recommended closer coordination between the Power Division and industry representatives to ensure that relief packages effectively reach operational enterprises and that structural issues affecting energy pricing are addressed.
While acknowledging the government’s commitment to supporting industrial growth, the PFC called for a review of the incremental tariff package to ensure it delivers sustained benefits across larger and operational industrial segments. Targeted adjustments, coupled with improved planning transparency and predictable pricing mechanisms, were suggested as key steps to improve the impact of energy incentives and strengthen the sector’s ability to compete in global markets.
The council stressed that without meaningful energy relief, export-oriented industries including furniture manufacturing may continue to face cost pressures that undermine productivity, competitiveness, and employment generation, despite the government’s broader efforts to support industry.
