Home Global Village High cost of business hurting economy

High cost of business hurting economy


News Desk |

The Pakistan Industrial and Traders Associations Front (PIAF) has said that the cost of doing business has increased manifold, leading to a massive decline in exports.

PIAF chairman Mian Nauman Kabir on Monday appreciated the government for a cut in energy tariff for the value-added exporting industry, urging the authorities to also extend this facility to the local industry to curtail the inflation, as an increased cost of doing business is hurting it severely. He also appreciated the government’s commitment to disburse outstanding refunds of exporting industry.

Chairman PIAF said that the Federal Minister has assured business leaders to disburse over Rs100 billion under sales tax refund claims in the shortest period. He hailed the government for fulfilling its commitment regarding payment of stuck refunds of exporters.

Pakistan in recent months has seen a surge in electricity and gas shortfall which has hurt the domestic users and local industries.

He highlighted that gas tariff per MMBtu in dollar terms in Bangladesh is $3.35; in India is $4.66 and in Vietnam is $6 and in Pakistan $7.59 including Rs 200 GIDC (Gas Infrastructure Development Cess) which is 126 percent higher than Bangladesh; 62.87 percent higher than India and 26.5 percent higher than Vietnam.

Commenting on electricity tariff, he stated that electricity tariff per KHW in Bangladesh is $0.09; in India is $0.09 and in Vietnam is $0.08 and in Pakistan is $0.11 which is 22.2 percent higher than Bangladesh & India and 37.5 percent higher than Vietnam. Therefore he demanded that gas tariff for the industry should be reduced at least by 10 percent.

The government of PM Khan has pledged to uplift the economy and provide subsidies to local producers and foreign investors. Pakistan in recent months has seen a surge in electricity and gas shortfall which has hurt the domestic users and local industries.

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The government has blamed the massive fog and outdated transmission lines for the load shedding in a winter season. However, it has pledged that it will fix these issues in near future and make Pakistan a hub of international trade and transit.

Finance Minister Asad Umar in several tweets boasted of an economic take-off during the early months of PTI’s government.

Meanwhile, Minister Water Resources in a tweet stated that the water shortage in rural areas would be overcome soon which would boost the agriculture production in the country.

https://twitter.com/MKhusroBakhtiar/status/1080831880310734851

Despite these claims, the local industry continues to suffer from fuel shortages in the country. The government has tried to ease pressure on the local industry by encouraging foreign investors to invest and provide training to local manufacturers.

Massive economic packages announced by China, Saudi Arabia, and UAE are expected to uplift the crippled economy and boost the confidence of local and foreign businesses in the country.