LAHORE, JAN 17 /DNA/ – The Pakistan Furniture Council (PFC) has warned that persistent increases in essential commodity prices and energy costs are placing significant strain on the furniture industry, urging the government to implement targeted measures to reduce production costs and support industrial growth.
Pakistan Furniture Council Director Shahbaz Aslam said that the Sensitive Price Indicator (SPI) shows a year-on-year rise of 3.87% in consumer prices, with staples such as wheat flour and gas experiencing sharp increases of 34.9% and 29.85% respectively. The weekly data also showed notable upticks in prices of other essentials, including eggs, beef, sugar, and firewood, disproportionately affecting middle- and lower-income households.
The PFC director highlighted that rising input costs, particularly for energy, wood, textiles, and other raw materials, are pushing production expenses higher, threatening the competitiveness of locally manufactured furniture in both domestic and export markets. Council representatives emphasised that unless steps are taken to ease these pressures, many small and medium-sized furniture units may face operational challenges, reduced output, and higher prices for consumers.
The council called on policymakers to introduce measures such as subsidised energy tariffs for manufacturing units, incentives for sourcing raw materials locally, and facilitation of affordable credit for working capital. They also urged a review of regulatory levies that add to production costs, suggesting that easing such burdens could help sustain growth and employment within the sector.
PFC representatives noted that the furniture industry has the potential to contribute more significantly to exports if production costs are controlled. They warned that continued inflation in energy and raw materials could undermine this potential, making Pakistani furniture less competitive compared to regional manufacturers.
The council also highlighted the importance of ensuring stable and predictable input costs, including electricity, gas, and imported raw materials, as a prerequisite for long-term planning and investment in the sector. They stressed that supporting industry would not only safeguard jobs but also encourage innovation, value addition, and higher quality production for both domestic and international markets.
The Pakistan Furniture Council urged the government to adopt a comprehensive support framework for manufacturing industries, particularly those vulnerable to rising commodity and energy prices, to sustain production, protect employment, and maintain the sector’s contribution to economic growth.
