Karachi: The cost of doing business in Pakistan is significantly higher than in surrounding regions, according to Mr. Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI). He highlighted that the current costs are 30 to 35 percent above regional averages, emphasizing the need for substantial reductions in tariffs and taxes to boost competitiveness and exports.
According to Federation of Pakistan Chambers of Commerce and Industry, Mr. Sheikh proposed several measures, including reducing the electricity tariff from 11 cents to 7 cents and the gas tariff from 14 cents to 9 cents. He also advocated for lowering total business taxes from 65 percent to 35 percent. Moreover, Mr. Sheikh suggested that the interest rate be set at 9.5 percent, with a gradual reduction to 6 percent. He called for a decrease in the levy on petrol prices and the abolition of taxes on electric vehicles and batteries to encourage alternative solutions.
Mr. Zaki Aijaz, FPCCI's Regional Chairman and Vice President, proposed infrastructure improvements such as converting roads alongside industrial estates into dual-carriageways and installing wastewater treatment plants in all industrial estates. He also highlighted the need for developers to adhere to allotment procedures in Special Economic Zones (EPZs).
The FPCCI demands the establishment of Boards of Management in all industrial estates and a revision of the Non-Utilization Fee (NUF). Additionally, the organization calls for a reduction in the Punjab Infrastructure Development Cess. Mr. Aijaz also acknowledged the contributions of former PIEDMC Chairman, Major (Retd) Javed Iqbal, and congratulated the newly elected Chairman, Mr. Shahzad Azam Khan, expressing hope for his effective role in industrial development and investment promotion.
At a recent ceremony, Secretary of Industries Punjab, Mr. Muhammad Umar Masood, emphasized that the Punjab Government prioritizes easy financing for SMEs. He announced forthcoming capital and working capital financing schemes for businesses, set to be unveiled by the Chief Minister of Punjab.