LAHORE – Lahore Chamber of Commerce and Industry (LCCI) President Faheemur Rehman Saigol on Saturday warned that the cost of doing business in Pakistan has reached an unsustainable level, stressing that the industrial sector urgently needs relief to prevent further economic damage.
Addressing the All Pakistan Chambers Conference, Sehgal said that a high policy rate, expensive electricity, and soaring gas prices are forcing industrial units to relocate abroad, resulting in job losses and declining industrial output.
He urged the government to take immediate corrective measures to retain local industries and attract investment.
The LCCI president called for a forensic audit of Independent Power Producers (IPPs) agreements to bring electricity tariffs at par with regional countries, stating that high energy costs are eroding Pakistan’s competitiveness in international markets.
Highlighting taxation issues, Sehgal emphasized the need to incentivize non-filers to bring them into the tax net while providing relief to existing taxpayers.
He also demanded simplification and transparency in the tax system, along with the abolition of unnecessary withholding taxes that increase compliance burdens on businesses.
Referring to the growing trade deficit, he said Pakistan must facilitate exporters to boost exports.
He called for the restoration of the Final Tax Regime for exporters and timely payment of duty refunds to improve liquidity and confidence in the export sector.
Sehgal pointed out that annual losses of around Rs850 billion incurred by state-owned enterprises are placing a heavy burden on the economy, making immediate privatization unavoidable.
He also noted that investment in the country has fallen to a 25-year low, underscoring the need to promote domestic investment through consistent and business-friendly policies.
The LCCI president further urged the government to provide collateral-free and cash-flow-based financing to small and medium enterprises (SMEs), stating that such measures would help increase employment, enhance productivity, and expand exports.
