LAHORE
The Ferozepur Road Industrial Association (FRIA) senior vice chairman Shahbaz Aslam has stressed the need for a revisit of the economic policies, as the economic indicators throughout the previous fiscal year remained very depressed amidst high inflation, low exports, depleting foreign reserves and continued uncertain position of the local currency.
Shahbaz Aslam, who is also the PIAF senior leader, said that almost all indicators of the economy continued to show poor performance, including volatile exchange rate, unprecedented hike in markup rate, repeated increases in electricity rates, gas shortage, price spiral, mismanagement and bad governance, becoming the hallmarks of the government.
He said that massive fall of rupee value continued to damage the economy, as the rupee witnessed a huge depreciation; one of the highest devaluations of local currency in Pakistan’s history in this period.
He urged the policy makers to concentrate on increasing tax-to-GDP ratio which was the lowest in Pakistan in the region in 2023.
He warned that the continued escalation of energy prices could result in the closure of numerous industries, amplifying unemployment rates and diminishing Pakistan’s export capabilities, appealing to the government to reverse the decision promptly and establish a fixed gas price for industries.
As the industrial sector grapples with the ramifications of the gas price hike, the FRIA leader’s stance advocates for the preservation of industrial stability and the prevention of potential economic setbacks for Pakistan.
He said that the repeated increase in the gas and electricity prices to an unbearable level by the government has left the trade and industry uncompetitive; blaming it for trapping the country in the IMF plans.
He, strongly opposing gas price surge, said that the gas tariff hike has threatened the industrial sector, besides increasing unemployment, saying that the every government had poor economic policies that unleashed the free fall of rupee against the dollar, ensuing in input cost escalation to pull down the manufacturing growth.
The FRIA Chairman condemned the recent increase in gas tariff as approved by the Economic Coordination Committee and the govt.
He has demanded the government to take back the decision of hike in gas tariff in the larger interest of national economy and to save the industries from collapse.
He warned that in case, the decision is not withdrawn; the industries will close down, resulting in decline in exports and mass unemployment.
In an appeal, he said that the business community was given assurance for 9 cents per KWh electricity tariff by the caretaker government.
The assurance brought a sigh of relief and hope for the business community that the new tariff will help in reduction of production cost and they will be able to continue production unabated and deliver export orders on time.
However, contrary to the assurance given, POL, electricity and gas tariff are being increased constantly by the caretaker government. He said that currently, the national economy is passing through severe crisis. To run an industry is no more a profitable business.
