President FPCCI Atif Ikram Sheikh Says Govt Must Declare Industrial Emergency to Avert Economic Collapse
Atif Ikram Sheikh, President FPCCI, has made a fervent appeal to the federal government to immediately declare an industrial emergency in Pakistan; warning that the country’s manufacturing base is teetering on the brink of a systemic and irreversible collapse. He reiterated that FPCCI rejects incremental package as no industry received electricity bill at PKR. 22 per unit and they continue to receive the bills at PKR. 34 – 35 per unit. Read More: https://theboardroompk.com/gas-supply-in-karachi-disrupted-amid-reduced-output-from-two-gas-fields/ FPCCI President Mr. Atif Ikram Sheikh and United Business Group (UBG) Patron-in-Chief Mr. S. M. Tanveer have asserted that a lethal combination of regionally-uncompetitive energy tariffs; exorbitant interest rates and a restrictive taxation regime has made it nearly impossible for local industries to compete in the global marketplace. They also highlighted the plight of stagnating real estate sector as 40 allied industries are also suffering along with it. Atif Ikram Sheikh maintained that, on excessive income tax rates, FPCCI demands the reduction of income tax on industry from 39% to 20% and it advocates the maximum income tax on the salaried class at 15%. Whereas, tariff of gas for industries should be brought down to PKR. 2,400 / MMBTU from the current PKR. 3,900 / MMBTU for export competitiveness. Atif Ikram Sheikh highlighted the alarming disparity in utility costs – noting that Pakistani exporters are currently burdened with electricity tariff of 12.5 cents per unit; while regional rivals in India, Bangladesh and Vietnam are operating at significantly lower rates of 6 to 9 cents – who are the major competitors of Pakistani products in the export markets. Atif Ikram Sheikh further argued that this gap has triggered a rapid process of de-industrialization; leading to the closure of hundreds of units and a mass exodus of capital to more business-friendly countries. Therefore, the industry can no longer sustain the cross-subsidy burden – which is effectively a hidden tax used to subsidize other sectors at the cost of national productivity.









