LAHORE
The Pakistan Furniture Council (PFC) has expressed concern over the growing economic pressures facing the industrial sector, urging policymakers to adopt an industry-friendly and growth-oriented monetary policy in light of rising inflation, higher interest rates, and ongoing geopolitical uncertainty.
The council noted that the combination of increasing energy costs, expensive credit, and fluctuating currency conditions is placing significant strain on manufacturing industries across the country, particularly small and medium enterprises (SMEs) operating in the furniture sector.
According to the PFC, Pakistan’s furniture industry—largely driven by small workshops, artisans, and medium-sized manufacturers—is highly sensitive to changes in borrowing costs and input prices. The council warned that any further tightening of monetary policy could slow production activity, reduce investment in expansion, and weaken employment opportunities in the sector.
It emphasized that inflation in the country is largely being driven by external factors, including global oil price volatility and supply chain disruptions, rather than domestic demand pressures. As a result, the council argued that relying solely on higher interest rates to control inflation may not address the root causes and could instead harm productive industries.
The PFC also highlighted that rising electricity and gas tariffs, along with increasing transportation costs, have significantly raised the cost of furniture production.
This has made locally manufactured products less competitive both in domestic and international markets, especially at a time when regional competition is intensifying.
The council further stated that SMEs in the furniture sector face limited access to affordable financing, with strict lending conditions and high markup rates restricting their ability to upgrade technology, expand production capacity, or meet export demand.
The PFC also called for greater policy coordination to ensure that industrial growth is not sacrificed in the pursuit of short-term macroeconomic stabilization. It stressed that sustainable economic recovery depends on strengthening manufacturing output, increasing exports, and supporting job creation.
PFC Director Shahbaz Aslam emphasized that the furniture industry is currently operating under severe financial pressure due to high production costs and limited access to affordable credit. He stated that rising interest rates are discouraging investment and making it difficult for businesses to sustain operations.
