Mansoor Sadiq

The industrial sector has been working at limited capacity for the last 10 months due to the imposition of import curbs by the government and shortage of dollars, hindering the opening of letters of credit (LCs). The inordinate delay in the opening of LCs has led to the shortage of raw materials for different industrial sectors causing shortage of scores of products for daily use. Talking to WealthPK, Chairman National Business Group of Pakistan, Mian Zahid Hussein said the industrial wheel had been in low gear for the last year.

He suggested that the government should reduce the production cost in the coming budget failing which all leading industries could shut down. Already, thousands of industrial units have either shut down or are working at their limited capacity, he added. “With the closure of leading industrial units, thousands of workers have become jobless, indicating an alarming economic situation,” said Mian Zahid. He said Pakistan was heading towards a dangerous fault line, adding that the ill-advised embargo on imports had seriously impacted the overall development of the industrial sector.

“The rupee’s devaluation against the greenback has caused massive inflation leaving the small and medium enterprises (SMEs) with no option but to close their operations. Amidst these hard times, if the industrial sector does not get any support, then the government will not be able to meet its revenue targets,” Mian Zahid added. All the leading industrial sectors in the country – including textile, automobile, pharmaceutical and manufacturing – are on the verge of collapse, needing a bailout package for revival.

Besides petroleum products, Pakistan is a major importer of food and chemicals, including pharmaceutical raw materials. During the last 10 months, traders and industrials have struggled to pay for essential goods and raw material import due to the low foreign exchange reserves. Worried about the current economic situation, importers and exporters are seeking tax relief from the government in the upcoming budget.

In this regard, a delegation of the Association of Builders and Developers of Pakistan (ABAD) led by Hanif Memon recently met Finance Minister Ishaq Dar and furnished him with some proposals about the upcoming budget 2023-24. Welcoming the budget proposals, Dar said the government was considering discussing the budget with all stakeholders and getting their suggestions. He told the delegation that the government was considering a business-friendly budget.

Credit: Independent News Pakistan-WealthPk