LAHORE: The Pakistan Industrial & Traders Associations Front (PIAF) has said that the cost of doing business has increased manifold, leading to constant decline in exports due to the flawed policies of the government.
PIAF acting chairman Tanveer Ahmed Sufi along with vice chairman Khawaja Shazeb Akram, while issuing press statement, said that value added industry is contributing its role in national exports in addition to providing jobs to millions of workers. But increased cost of doing business is hurting industry which must be curtailed to get maximum share for Pakistan economy.
Sufi highlighted that gas tariff per MMBTU in dollar terms in Bangladesh is $3.35; in India $4.66 and in Vietnam $6 and in Pakistan $7.59 (including Rs.200 GIDC) which is 126% higher than Bangladesh; 62.87% higher than India and 26.5% higher than Vietnam. Commenting on electricity tariff, he stated that electricity tariff per kwh in Bangladesh is $0.09; in India $0.09 and in Vietnam $0.08 and in Pakistan is $0.11 which is 22.2% higher than Bangladesh & India and 37.5% higher than Vietnam. Therefore, he demanded that gas tariff for export industry should be reduced at least by 10% less than of tariff of regional countries.
He emphasized that reduction in inputs is the long awaited demand of the value added industry to make competitive the Pakistani exporters in the international market because minimum wage in Pakistan is 111% higher than Bangladesh (Pakistan $144 and Bangladesh $68). Hence, 20% reduction will make Pakistani exporters viable to compete with regional competitors.
