By Commerce Reporter
LAHORE – Governor Punjab Sardar Saleem Haider has acknowledged the vital contributions of the business community to Pakistan’s economic progress saying that their dedication in challenging times have been instrumental in sustaining the national economy.
Addressing at the Lahore Chamber of Commerce and Industry, Governor Punjab said that despite adverse circumstances, the business sector has remained committed to the country’s development. However, he pointed out that the existing business environment does not provide the necessary support and stability required for sustainable growth. He assured that the concerns raised by LCCI regarding high electricity and gas tariffs, as well as supply shortages, would be conveyed to President Asif Ali Zardari and Prime Minister Shehbaz Sharif. He further added that the federal government is keen on reducing energy costs and improving business conditions.
LCCI President Mian Abuzar Shad, Senior Vice President Engineer Khalid Usman, Vice President SAARC Chamber Mian Anjum Nisar and former President Muhammad Ali Mian also spoke on the occasion.
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The Governor said that the business community has always demonstrated unwavering commitment to the nation, even during challenging times. I do not just represent the federal government but also the business sector,” he said. He agreed with LCCI’s stance on the high electricity and gas prices, coupled with unreliable supply, which are hampering industrial growth.
Governor Punjab pointed out that countries like Bangladesh, India, Nepal and Sri Lanka, once lagging behind Pakistan, have now surged ahead. He added that President Asif Ali Zardari and Bilawal Bhutto Zardari are keen on reducing energy costs. He pledged to convey LCCI’s recommendations to the President and Prime Minister and ensured that business consultations would be incorporated into the budget planning. He also acknowledged the excessive tax burden on businesses and stressed the need for revision.
“The government must take concrete steps to improve the business climate. We need greater efforts and a clear vision for economic progress. It is encouraging to see political stability improving and inflation decreasing. The reduction in interest rates and the rise in the stock market are positive signs,” he added. Governor Punjab the business community that his office remains accessible to them at all times.
LCCI President Mian Abuzar Shad expressed optimism about the recently launched ‘Uraan Pakistan’ initiative under the leadership of the Prime Minister, hoping that its effective implementation would be a milestone in stabilizing and developing the economy. He also lauded the Special Investment Facilitation Council (SIFC) for playing a crucial role in promoting investment.
He said that remittances surged by 33% in the first six months of the fiscal year, reaching $17.8 billion, which is a positive economic indicator. Furthermore, he appreciated the UAE’s decision to roll over two $1 billion deposits in the State Bank of Pakistan for another year, reinforcing economic stability.
Mian Abuzar Shad informed the Governor about LCCI’s upcoming events, including the three-day Lahore Shopping Festival starting on January 31 at the Expo Center and the LCCI Freelancers Awards scheduled for the second week of February.
He underscored the high cost of doing business in Pakistan compared to other regional countries, citing devaluation, high electricity and gas tariffs, MDI charges on closed industries and excessive taxation as major concerns. He also pointed out governance and corruption issues in several government institutions, which add to the challenges faced by businesses.
“Our trade deficit has exceeded $11 billion in the first six months of this fiscal year. Due to the lack of business-friendly policies, industries are relocating abroad and new investors are looking for opportunities outside Pakistan. This is alarming, as foreign direct investment in the country has remained at just $1.33 billion during the same period,” he added.
LCCI Senior Vice President Engineer Khalid Usman emphasized the urgent need to reduce government expenditures for economic stability. He stated that while increasing revenue, exports, investments and remittances is crucial, cutting down on unnecessary spending is equally important.
He said that if we want our industries to thrive, exports to grow and imports to decline, we must provide affordable electricity and gas to businesses. Without lowering production costs, we cannot enhance exports. The government must focus on promoting green energy, particularly solar energy, by improving net metering rates.
LCCI officials raised concerns about compliance with environmental regulations, stressing that industries face stringent penalties, including shutdowns, for minor violations. They pointed out that over 80% of smog is caused by vehicular emissions, while industrial contribution is minimal. Despite this, industries bear the brunt of strict environmental regulations.
They urged the government to facilitate industries, particularly SMEs, by offering easy financing for environment-friendly technologies to ensure compliance with regulations without hampering production.
SAARC Chamber Vice President Mian Anjum Nisar praised Governor Punjab’s pro-business approach and stressed the need to lower the cost of doing business in Pakistan to enhance competitiveness, boost exports, generate employment and reduce imports. He also highlighted issues related to MDI charges and expressed hope for a reduction in electricity prices.
Former LCCI President Muhammad Ali Mian emphasized the interdependence of economic stability and political stability, appreciating the Governor’s efforts in this regard. He proposed that a meeting of all chambers and business associations should be held under the Governor’s chairmanship at the Governor House to discuss proposals for the federal budget.
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