Businessmen turn focus to domestic markets
Move away from exports as high cost renders them uncompetitive
PHOTO: REUTERS
FAISALABAD:
An increase in the cost of production is a major cause for concern as exports are persistently weakening and businessmen are left with no option but to restrict export shipments and focus only on domestic markets to survive in the changed scenario, remarked the Faisalabad Chamber of Commerce and Industry (FCCI) President Muhammad Saeed.
He was speaking in a meeting of traders representing varying business groups and representatives of auto part, food, confectionery, flour, power loom and sizing industries.
Commenting on the prevailing economic situation, Saeed described it as the most discouraging. “It is the outcome of successive policies of previous governments, which failed to resolve the problems confronted by the business community,” he said.
He noted that Pakistan had faced the worst energy crisis during the tenure of previous government, but the PML-N administration ensured continued supply of electricity and gas. Still, “the price escalation has made our exportable surplus uncompetitive in the international markets.”
He was critical of the difference in gas prices within the country, saying industrialists in Punjab were receiving gas at Rs1,000 per million British thermal units (mmbtu) whereas in Sindh gas was available at Rs600 per unit.
He aired concern over the “unilateral” decision taken by the government about increase in worker salaries without consulting the real stakeholders.
Apparently, he said, the increase of Rs1,000 in monthly pay was negligible, but its overall impact was unbearable for the industrialists that had been passing through a deep crisis for the last many years.
He suggested that instead of increasing salaries of industrial workers, the government should provide them subsidy in order to meet their basic and fundamental needs.
Time had proved that the increase in prices of agricultural commodities and salaries of workers had further pushed up inflation and poverty in the country, he said. Hence, the government should consult the stakeholders and frame practical policies through which objectives of industrial growth could be achieved in addition to providing relief to the industrial workers.
He emphasised that political instability had further aggravated the economic situation as after the disqualification of Nawaz Sharif a deep-rooted conspiracy was being hatched to eliminate the entire political leadership.
Published in The Express Tribune, August 6th, 2017.
An increase in the cost of production is a major cause for concern as exports are persistently weakening and businessmen are left with no option but to restrict export shipments and focus only on domestic markets to survive in the changed scenario, remarked the Faisalabad Chamber of Commerce and Industry (FCCI) President Muhammad Saeed.
He was speaking in a meeting of traders representing varying business groups and representatives of auto part, food, confectionery, flour, power loom and sizing industries.
Commenting on the prevailing economic situation, Saeed described it as the most discouraging. “It is the outcome of successive policies of previous governments, which failed to resolve the problems confronted by the business community,” he said.
He noted that Pakistan had faced the worst energy crisis during the tenure of previous government, but the PML-N administration ensured continued supply of electricity and gas. Still, “the price escalation has made our exportable surplus uncompetitive in the international markets.”
He was critical of the difference in gas prices within the country, saying industrialists in Punjab were receiving gas at Rs1,000 per million British thermal units (mmbtu) whereas in Sindh gas was available at Rs600 per unit.
He aired concern over the “unilateral” decision taken by the government about increase in worker salaries without consulting the real stakeholders.
Apparently, he said, the increase of Rs1,000 in monthly pay was negligible, but its overall impact was unbearable for the industrialists that had been passing through a deep crisis for the last many years.
He suggested that instead of increasing salaries of industrial workers, the government should provide them subsidy in order to meet their basic and fundamental needs.
Time had proved that the increase in prices of agricultural commodities and salaries of workers had further pushed up inflation and poverty in the country, he said. Hence, the government should consult the stakeholders and frame practical policies through which objectives of industrial growth could be achieved in addition to providing relief to the industrial workers.
He emphasised that political instability had further aggravated the economic situation as after the disqualification of Nawaz Sharif a deep-rooted conspiracy was being hatched to eliminate the entire political leadership.
Published in The Express Tribune, August 6th, 2017.