Industries suffering amid raw material shortage
“An impact on this sector will result in massive losses to the numerous other industries. This is why the real-estate sector is granted subsidies,” says Jawad Nayyar, DAO PropTech Co-founder. photo: file
The Lahore Chamber of Commerce and Industry (LCCI) on Tuesday urged the government to formulate a policy on the import of raw material.
In a statement released on Tuesday, acting LCCI President Zafar Mehmood Chaudhry warned, “Industrial closure due to an acute shortage of raw material will be a new phenomenon that is likely to disturb the government in the coming days.”
He said that the banks’ refusal to issue LCs is delaying the industry’s access to raw material. As a result, both the industry’s ability to meet local market demand and volume of exports are declining.
The LCCI president also said that the lack of availability of raw material is forcing businesses to lay off employees and shop owners to stop employing new employees, doubling the rate of unemployment.
He warned that the already strained economy will suffer further if the raw material shortfall issue is not addressed urgently.
“Currently, it seems the government has no specific policy for the import of raw material. Prime Minister Shehbaz Sharif and Finance Minister Ishaq Dar should publish a policy declaration to address the pressing problem,” suggested Chaudhry.
He further claimed that the shortage of wheat was causing ‘mayhem’ with workers choosing to stand in line for free flour bags instead of going to work.
“LCCI has repeatedly asked the government to address the LCs problem without success. As the month of Ramzan approaches, a shortage of various items will become apparent as a result of this problem,” he warned, urging the government to look into the matter immediately and find a solution.
Published in The Express Tribune, March 22nd, 2023.
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