Industrial Sector Faces Growing Pressure
KARACHI: President of the SITE Association of Industry, Abdul Rehman Fudda, has urged the government to introduce immediate relief measures for the industrial sector, warning that rising production costs, expensive energy and policy uncertainty are putting the survival of industries at serious risk.
In a statement, Mr. Fudda said a strong industrial base is indispensable for boosting exports, creating employment, attracting investment and ensuring sustainable economic growth. He cautioned that unless the challenges confronting manufacturers are addressed without delay, Pakistan’s economic recovery could lose momentum while fresh domestic and foreign investment may continue to decline.
He noted that escalating electricity and gas tariffs, increasing production costs, high financing expenses and the absence of consistent economic policies have significantly undermined industrial activity. Despite these challenges, he said, the business community continues to keep the wheels of the economy moving, adding that further neglect of the industrial sector would be against the country’s broader economic interests.
Urgent Reforms Needed to Support Manufacturers
The SITE chief called upon the government to ensure the supply of energy at competitive tariffs, simplify the tax regime, expedite the payment of pending refunds, improve the ease of doing business and introduce investor-friendly policies.
Such measures, he said, are essential to enable Pakistani manufacturers to compete effectively in international markets and strengthen the country’s export performance.
Pakistan’s industrial sector plays a critical role in generating employment, supporting exports and attracting investment. However, elevated energy prices and other operating costs can make locally produced goods less competitive compared with products manufactured in regional markets.
Policy Continuity Critical for Investment
Mr. Fudda stressed that Pakistan’s industrial sector possesses enormous untapped potential, but this can only be realised through policy continuity, meaningful consultation with the private sector and timely pro-industry decisions.
Uncertainty over taxation, energy pricing and economic regulations can discourage businesses from expanding their operations or making fresh investments. Greater policy consistency could therefore help businesses plan for the long term and improve investor confidence.
Industrial Growth Essential for Economic Recovery
He reaffirmed the industrial community’s commitment to supporting economic stability and national development, while urging the government to reciprocate by taking practical steps to restore investors’ confidence and place industrial growth at the centre of its economic agenda.
The call for emergency measures highlights the growing concerns within Pakistan’s manufacturing sector. Addressing energy costs, taxation, financing challenges and regulatory uncertainty will be essential if the country is to strengthen industrial production, increase exports and create sustainable employment.