FAISALABAD: Faisalabad Chamber of Commerce and Industry (FCCI) President Farooq Yusuf Sheikh has demanded reduction in electricity tariff to nine cents per unit in addition to bringing down the policy rate to a single digit and said that it is imperative for making Pakistani products competitive in international markets.
In a statement, he said that without such measures, the goal of increasing exports to 100 billion dollars would remain unachievable.
He said that despite facing severe economic challenges, the business community is striving hard to strengthen the national economy on solid and sustainable foundations. However, the government should formulate long-term economic policies through mutual consultation with stakeholders and take practical steps to create an environment conducive to business for sustainable growth, he added.
He highlighted ongoing fluctuations in the national economy and declining export trend and termed it alarming for both the private sector and the government.
He said that FCCI had already identified several key factors behind the export decline and also shared viable proposals to address them, but these suggestions have yet to receive serious attention from policymakers.
He pointed out that while the government is ambitious about expanding exports to 100 billion dollars, the regional competitors enjoy much lower energy tariffs and policy rates which placed Pakistani industries at a disadvantage.
He demanded immediate rationalization of these rates in line with regional economies to restore competitiveness in the global market.
He said that economic policies should have a minimum lifespan of ten years to provide stability and predictability for exporters and investors. Continuity in policies is imperative to achieve tangible results and enable industries to focus fully on enhancing production and exports, he added.
The FCCI Chief also underlined the need for exploring new markets and promoting exports of non-traditional products instead of relying only on textiles. He suggested tapping into emerging markets in Africa and diversifying export portfolios to reduce dependency on a single sector.
He said that FCCI’s research and development wing is actively working on diversification strategies and its recommendations would be shared through upcoming seminars.
He also demanded incentive packages to encourage innovation and expansion into new markets.
He highlighted widening trade deficit and said that no restrictions should be imposed on imports used in export-oriented industries. However, he advocated promoting local manufacturing of such inputs to reduce import dependency while maintaining the flow of industrial production.
