LAHORE: Zaki Aijaz, Regional Chairman and Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), demanded that the government should immediately reduce the interest rate to 12% and fix the electricity price at 9 cents for all industries.
Zaki also called for the revision of agreements with IPPs, the elimination of Rs240 billion in cross-subsidies, and the finalization of taxes on the retail sector.
He also suggested that the concept of non-filers should be abolished and conditions for non-filers should be made stricter. He made these demands during an emergency press conference at the FPCCI Regional Office in Lahore.
The industries established in FATA and PATA have benefited greatly, and a phased tax will be imposed on them over the next two to three years.
He demanded that during the budget making process, government should consider the proposals of the FPCCI.
He stressed his hope that closed industries will resume their operations if the government fixes the electricity rate at 9 cents and reduces the interest rate to 12%. He also said if the closed industry resume its operations they will consume 3000 megawatts of electricity, and the government will receive revenue of Rs500 billion.
Zaki Aijaz warned the government, saying that many large and medium-scale factories have already closed down, and the remaining factories are waiting that if the government does not provide relief in the budget, more factories will shut down.
It is absolutely impossible to promote industry with an interest rate of 22% and expensive electricity at 16 cents. He said that the inflation rate has decreased from 37.97% in May 2023 to 11.8% in May 2024, and the interest rate should be reduced proportionally.
Special Investment Facilitation Council (SIFC) had fixed the electricity rate at 9 cents, but it has not been implemented yet. It should be implemented immediately. Unless an agreement is reached with IPPs, industries cannot operate. The increasing electricity prices are adding to the cost of doing business, and our products are becoming uncompetitive in the international market.
Copyright Business Recorder, 2024