Industrialists call for reforms to reduce business costs

KARACHI: Industrialists have urged the government to introduce reforms to reduce the cost of doing business, as rising petrol and diesel prices continue to put pressure on the economy.

Addressing a press conference, office-bearers of the Karachi Chamber of Commerce and Industry (KCCI) highlighted the challenges faced by the business community amid geopolitical tensions in the Middle East.

Chairman of the Businessmen Group, Zubair Motiwala, called for the introduction of a freight subsidy while regional instability persists.

He suggested that such subsidies should be implemented on an incremental basis and that the government should cover the additional transportation costs faced by traders.

He warned that economic recovery would remain difficult unless business costs are reduced.

He also expressed hope that the ceasefire between the United States and Iran would remain sustainable, adding that improved relations with neighboring Iran could bring economic benefits to Pakistan.

Motiwala further pointed out that levies on RLNG are acting as penalties on businesses and stressed that traders should be provided relief through freight subsidies.

He also urged the government to lower taxes on solar energy, noting that it helps reduce operational costs for industries.

KCCI President Rehan Hanif emphasized the need to strengthen economic ties with neighboring countries rather than relying solely on Western markets.

He said Pakistan’s industrial growth heavily depends on gas availability and noted that completion of the Iran-Pakistan gas pipeline could provide cheaper energy.

He added that industries have endured significant challenges in recent months and urged Prime Minister Shehbaz Sharif to consider the business community’s proposals.

He highlighted that nearly 80% of export orders are lost due to high costs, stressing that the industry is not seeking subsidies but rather structural reforms to reduce expenses.

Former KCCI President Jawed Bilwani stressed the need to invest in alternative energy sources. He also called for increasing the storage capacity of the Trading Corporation of Pakistan (TCP) to ensure food security in the country.

Meanwhile, petroleum prices are expected to decline by Rs30 to Rs60 per litre following a drop in global oil prices after the ceasefire between the United States and Iran.

The prime minister has issued special instructions after falling petroleum prices in the global market. Prime Minister has directed concerned ministries to extend benefit of the oil prices in international market to people.

“The finance and petroleum ministries have started considering over reduction in fuel prices,” sources said.