High energy cost, policy uncertainty threaten industry: SITE

KARACHI (Staff Report): Industrialists of the SITE Area have warned the government that expensive energy, political instability and inconsistent economic policies are placing severe pressure on the country’s manufacturing sector and threatening the survival of existing industries.

SITE Association of Industry (SAI) President Abdul Hadi said if the government is serious about keeping the industrial wheel moving and protecting the economy from further damage, it must immediately address high energy costs and policy uncertainty.

In a statement issued on Monday, Hadi said the government must acknowledge ground realities and take industry-friendly measures if it genuinely wants industrial growth and economic recovery. Otherwise, he warned, even the survival of existing industries would become difficult.

He stressed that uninterrupted supply of electricity, gas and water, political stability and consistent long-term economic policies are essential for industrial and economic activity. He said production costs in Pakistan must be brought in line with those of regional countries if local industry is to remain competitive in global markets.

The SAI chief called for fundamental reforms in the energy sector. He demanded that electricity, gas and water tariffs be reduced to competitive levels prevailing in neighboring countries so that local manufacturers can escape the constant pressure of rising production costs and retain their share in international markets.

Hadi said political stability is fundamental to industrial and economic progress. He said political uncertainty in the country was affecting the confidence of international buyers and business partners, making it harder for exporters to secure orders and discourage investment.

He said Pakistan needs consistent, long-term industrial and economic policies that would remain in place despite changes in government. Frequent policy changes, he said, undermined business planning and investor confidence.

Abdul Hadi also demanded a durable, transparent and predictable tax regime along with a reduction in interest rates to levels comparable with regional competitors.

Without restoring the confidence of investors and industrialists, he said, new investment, industrial expansion, job creation and meaningful growth in exports would remain impossible.

The government must move beyond claims of economic recovery and take urgent, practical steps to address the energy crisis, political instability and policy uncertainty on a priority basis, otherwise the very survival of industry would be at risk, he added.