LAHORE: The Federation of Pakistan Chamber of Commerce and Industry (FPCCI) has called on the government to reduce the interest rate to 12 pc and fix electricity prices at 9 cents for all industries to boost industrialization.

FPCCI Vice President and Regional Chairman Zaki Aijaz and Former Provincial Minister for Industries & Commerce Punjab and Patron-in-Chief United Business Group (UBG) SM Tanveer made the demand during a meeting with a delegation from the Gujrat Chamber of Commerce and Industry (GTCCI) at the FPCCI Regional Office in Lahore.

Aijaz warned that high interest rates and electricity costs are stifling business activities, making it impossible for industries to operate. “At 19.50pc interest rate and 16 cents per unit electricity, industrialization is impossible,” he said.

The FPCCI predicts that government revenue will decline if interest rates and electricity costs are not reduced. Aijaz stressed that reducing electricity rates to 9 cents and interest rates to 12pc would enable closed industries to restart operations, consuming 3,000 megawatts of electricity and generating Rs 500 billion in revenue for the government.

Aijaz highlighted that neighbouring countries operate with energy prices at approximately 7 cents per unit. “We urge the government to implement measures to stabilize energy prices at 9 cents and ensure a fair pricing mechanism,” he said.

Aijaz mentioned that the SIFC had previously recommended reducing electricity rates to 9 cents, but implementation remains pending.

The FPCCI Regional Chief criticized the SBP’s policy rate of 19.50pc, stating that high interest rates are stifling business activities and hampering economic growth.

Copyright Business Recorder, 2024