Industry Faces Crisis as High Power Costs and Taxes Threaten Pakistan’s Manufacturing Sector
Pakistan’s manufacturing sector is teetering on the edge, with persistently high energy costs, expensive credit, and heavy taxation raising alarms among business leaders. The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has urged the government to declare an industrial emergency to prevent further decline.
FPCCI President Atif Ikram Sheikh highlighted the challenges, noting that industrial electricity bills continue to hover around Rs. 34 to Rs. 35 per unit, despite repeated government assurances of relief. He emphasized that these costs, combined with other financial pressures, are pushing manufacturers toward what he described as a systemic collapse.
Sheikh rejected the notion of incremental support packages, arguing that promised reductions, such as power tariffs of Rs. 22 per unit, have yet to materialize for any industrial segment. According to FPCCI, temporary or piecemeal measures are insufficient to address the structural issues facing Pakistan’s industries.
The high cost of energy is just one component of the broader problem. Many manufacturers also face rising interest rates on industrial credit and substantial tax burdens, further straining operational viability. FPCCI warns that without immediate and decisive government intervention, the country could witness a significant slowdown in production, job losses, and reduced export competitiveness.
Industry experts and economists alike stress that a coordinated response is necessary. Measures could include long-term reductions in industrial power tariffs, tax relief for struggling sectors, and more accessible financing options. The FPCCI’s call for an industrial emergency reflects the urgent need to protect a sector that has historically driven economic growth and employment in Pakistan.
As energy prices and financial pressures continue to mount, the coming months may prove critical for the country’s manufacturing base. Business leaders are closely monitoring government actions, emphasizing that delays could have lasting consequences for both domestic production and international trade.
