Concerned about “cross-subsidies,” industrialists demand equitable energy rates. The PM requested that commercial relations be established with India and that he makes peace with Imran for “political stability.”
Foresee growing prices, which might allow rivals to win over Pakistan’s export orders.
KARACHI Business Community Praised The PM
Industry leaders expressed concern that doing business in the current climate, characterized by high energy costs and erratic government policies, would be nearly impossible as PM Shahbaz Sharif sat down with them to discuss ways to boost the economy through exports.
The business community in Karachi praised the PM tenacity and asked pointed questions at an hour-long meeting at the CM House. However, they suggested that he concentrate on establishing political stability to revive the economy.
They expressed gratitude to the newly installed government for pursuing the International Monetary Fund (IMF), which stabilized the money market and reduced inflation. They also proposed that PM Shahbaz start trade negotiations with India and extend a handshake to PTI founding chairman Imran Khan, who is currently detained, ostensibly to promote political stability.
Arriving at the port city for his first visit since his election, PM Shahbaz said that the meeting was an effort to hear the sharp minds of industry, take in their advice, and implement it for a complete blueprint for economic progress.
You guys have excellent business acumen. It is necessary for you to move forward now and conclude this leasing business. Let’s treble exports in the next five years by concentrating on real growth in the agricultural and industrial sectors. It’s challenging, but not unachievable. For me, it’s an article of religion. After hearing what you had to say, I would devise a strategy to implement it.
He said East Pakistan, which has made great progress in industrial growth but was formerly seen as a burden on the nation, alluding subtly to the growing economy of Bangladesh.
When we were taught that it was a load on our shoulders, I was young. You are all aware of the current state of economic growth at which that “burden” has reached. And when we look at them, we feel embarrassed, PM Shahbaz said.
Partnerships for trade
Business leaders expressed their gratitude for the government’s recent actions during a question-and-answer period that followed the PM’s brief address, but they also made further requests.
To get the intended outcomes, they also exchanged ideas for economic policy.
The country’s political instability worried business executives so much that they encouraged the prime minister to take the initiative in his role as head of state. “Since taking over, you have made a few handshakes that have yielded positive outcomes, and the IMF deal is one of them,” stated Arif Habib, the head of the massive stock market company Arif Habib Group.
I propose that you shake hands a couple more times. Trade with India is one of them, and it would be very beneficial to our economy. Second, you must furthermore [make amends] with an inmate of Adiala Jail (a reference to PTI leader Imran Khan, who is incarcerated). I think you can succeed if you try to make the necessary corrections at that level as well.
While claiming to have taken note of his suggestions for economic expansion and promising to bring businesses from across the nation to Islamabad and sit with them till all the difficulties are resolved, the PM sidestepped explicitly answering queries about political stability.
Next up was a presentation by well-known industrialist Zubair Motiwala, the leader of the business people Group (BMG), a group of businesspeople in Karachi and chief of the Trade Development Authority of Pakistan (TDAP).
He questioned the government’s ambitious aim considering the current business regime in his presentation. A slide from the prime minister’s presentation released by the Karachi Chamber of Commerce and sector (KCCI) stated that while he is eager to help the sector by tripling exports and cutting business expenses, it appears unattainable given the existing circumstances.
We are raising energy costs by introducing cross-subsidies, which has led to a gas tariff of Rs2,600 per unit for industrial heating and Rs3,100 per unit for captive power. It is astonishing that we aim to boost exports and local industry. This is because the rising cost of doing business with these gas and electricity prices would soon take us over and get Pakistan’s export orders.
Low gas cost
He brought up the subject of gas prices six months prior, when they were Rs. 1,150 and Rs. 1,350 a unit, respectively, and questioned how any company could make it in the present global market environment.
The industry is prepared to cover the full cost of gas without receiving any subsidies. We desire no subsidies. Mr. Motiwala stated, “All we want is a fair gas price for industry.” During his presentation, he made the case that Pakistan was burdened with capacity costs because of the “unnecessary capacity” of power plants, which prevented surplus electricity from being either sold or given to companies at a reduced cost.
In the electricity industry, this superfluous capacity is also making the cycle debt problem worse. He continued, saying that as a result, a plan to lower the flat pricing for industrial customers must be introduced. This would raise power consumption while also assisting in the resolution of the circular debt issue.
Earlier, at the Karachi airport, the premier was greeted by top officials, ministers, and governor of Sindh, Kamran Tessari. To offer his respects, the PM also visited the tomb of Quaid-I-Azam.
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