Federal Minister for Industries and Production Rana Tanveer Hussain said on Saturday that government is committed to economic revival through collaboration with the business community.
Talking to businessmen during his visit to Lahore Chamber of Commerce and Industry (LCCI) here, he said that Prime Minister Shehbaz Sharif’s decisive measures had been instrumental in stabilising the economy. He said that during his last tenure of 16 months, he averted the risk of default and set the country on path to economic recovery.
LCCI President Mian Abuzar Shad, Vice President Shahid Nazir Chaudhry, former Presidents Mian Anjum Nisar, Muhammad Ali Mian, former Senior Vice President Ali Hussam Asghar and former Vice President Faheem ur Rehman Saigol also spoke on the occasion.
Rana Tanveer Hussain said that a review of agreements with Independent Power Producers (IPPs) has resulted in lower electricity costs with further reductions expected by April to ease production expenses. He said that interest rates had been reduced from 22 percent to 12 percent within ten months. He said that SBP is independent and the government cannot interfere in its matters.
Calling for investment in research and development, the Minister stressed the need to support the industrial and agricultural sectors, encouraged exporters to focus on value addition and explore emerging markets such as Central Asia and Africa. He also announced plans to reduce land prices in Special Economic Zones (SEZs) and Export Processing Zones (EPZs) and to develop SEZs on Pakistan Steel Mills’ land.
While talking about Federal Board of Revenue’s (FBR) policies, he said that effective and comprehensive measures are being taken to ease taxation. He urged the business community to aim for exports of USD 100 billion over five years, exceeding the government’s target of USD 60 billion.
Federal Minister also commended LCCI for its proactive approach in addressing business challenges and congratulated them.
LCCI President Mian Abuzar Shad raised concerns over rising energy costs, MDI charges on inactive industrial units and the policy rate which, though reduced to 13 percent, remains uncompetitive compared to regional countries. He emphasized the need to reduce the rate to single digits to encourage investment.
The LCCI President also called for measures to address the exorbitant prices of industrial land, which have reached Rs. 50 million per acre, hindering investment and limiting the competitiveness of exporters in global markets. He stressed the importance of ensuring the availability of raw materials, such as metals, steel and textiles and urged cascading tariffs to avoid industrial distortions.
Mian Abuzar proposed establishing Export Promotion Sectoral Councils led by the private sector under the Ministry of Industries to strengthen value chains across various industries. He also advocated the creation of new SEZs and EPZs in Lahore to address the capacity constraints of existing industrial estates and suggested formulating a 20-year industrial master plan to set up industrial zones in every district.
Highlighting environmental challenges, he called for financial support for SMEs to comply with regulations, including the installation of water treatment plants. He also encouraged the local manufacturing of electric vehicles and solar panels, suggesting joint ventures with Chinese companies.
LCCI Vice President Shahid Nazir Chaudhry voiced concerns about the high conversion fees charged by LDA on industrial land, urging the government to abolish the 20 percent commercial value charge, which is stifling industrial expansion.—APP
