LAHORE, MAY 4 /DNA/ – The Ferozepur Road Industrial Association (FRIA) has warned that the continued escalation of energy prices could result in the closure of industries, amplifying unemployment rates and diminishing Pakistan’s export capabilities.
In a statement issued here today, the FRIA senior vice chairman Shahbaz Aslam emphasising the need for the government to explore and provide affordable energy alternatives for the industry, stressed that such measures are crucial for ensuring the competitiveness of Pakistani products in the global market. As the industrial sector grapples with the ramifications of the gas price hike, the FRIA leader’s stance advocates for the preservation of industrial stability and the prevention of potential economic setbacks for Pakistan.
Shahbaz Aslam said that the repeated increase in the gas and electricity prices to an unbearable level by the government has left the trade and industry uncompetitive; blaming it for trapping the country in the IMF plans.
Strongly opposing gas price surge, he said that the gas tariff hike has threatened the industrial sector, besides increasing unemployment, saying that the every government had poor economic policies that unleashed the free fall of rupee against the dollar, ensuing in input cost escalation to pull down the manufacturing growth.
The FRIA senior vice chairman demanded the government to take back the decision of hike in gas tariff in the larger interest of national economy and to save the industries from collapse. He warned that in case, the decision is not withdrawn, the industries will close down, resulting in decline in exports and mass unemployment.
In an appeal, he said that the business community was given assurance for 9 cents per KWh electricity tariff by the caretaker government. The assurance brought a sigh of relief and hope for the business community that the new tariff will help in reduction of production cost and they will be able to continue production unabated and deliver export orders on time. However, contrary to the assurance given, POL, electricity and gas tariff are being increased constantly by the government.
Showing their profound concerns, Anjum Nisar said that the country’s exports have nosedived comparatively by 12.71 percent from $31.78 billion, citing the harsh factors, which was hurting the industry. This was 16.61 percent decline to the export target of $32.35 billion set for the fiscal year 2022-2023, he said that the export-oriented industries were faced with the greatest ever challenges in terms of the highest cost of manufacturing. Many industries, he claimed to have already stopped their production in the country with several others fearing a closure because of the unviable trade, which may also pulled the country’s exports further down.
Shahbaz Aslam said the government should prioritise resolving the energy crisis by providing sufficient and affordable electricity and gas to industries. The import bill should be reduced by imposing bans on luxury products. He highlighted controlling inflation to ensure affordable living costs for the masses and containing the cost of production for businesses at a local level. He stressed the need for a revisit of the economic policies, as the economic indicators throughout the 2023 remained very depressed amidst high inflation, low exports, depleting foreign reserves and continued uncertain position of the local currency.
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