LAHORE, April 9 —The Lahore Chamber of Commerce & Industry SVP Tanveer A Sheikh has welcomed a sharp increase in workers’ remittances, even as concerns mount over rising electricity costs following a tariff hike approved by National Electric Power Regulatory Authority.
Read also: LCCI seeks immediate reduction in electricity tariffs as industries face shutdowns
According to the Chamber, remittances rose by 17 per cent month-on-month to reach $3.83 billion in March 2026, largely driven by inflows from overseas Pakistanis ahead of Eid-ul-Fitr. The increase has provided timely support to the country’s external account and foreign exchange reserves.
LCCI leadership described the trend as a sign of continued trust by the diaspora in Pakistan’s economy, but stressed the need for careful and strategic utilisation of these inflows. Officials urged policymakers to direct remittances towards productive sectors such as industry, exports and investment, rather than limiting their impact to consumption.
“Remittances should be treated as a strategic economic resource capable of driving sustainable growth,” he noted, calling for reforms to maximise their long-term benefits.
However, the positive momentum has been tempered by growing unease in the business community following NEPRA’s approval of an electricity tariff increase of approximately Rs1.4 per unit.
Industry stakeholders warned that the higher energy costs would significantly raise the cost of doing business across key sectors, including manufacturing, export-oriented industries and small and medium enterprises.
Business leaders cautioned that the tariff hike could erode profit margins, reduce the competitiveness of Pakistani exports in global markets and lead to higher consumer prices as companies pass on increased costs.
They also expressed concern that rising electricity prices may discourage new investment at a time when the economy is already facing inflationary pressures, currency volatility and supply chain challenges.
Analysts say the contrasting developments underscore the need for balanced economic policymaking, ensuring that gains from remittances are not offset by rising input costs for businesses.
