BOI reviews 193 factory closures in Faisalabad

PM seeks assessment as industry flags taxes, energy costs and interest rates as reasons for closures

ISLAMABAD:

Federal Minister for Board of Investment (BOI) Qaiser Ahmed Sheikh on Tuesday chaired a consultative meeting with major chambers of commerce and industry and the All Pakistan Textile Mills Association (APTMA) to review reports of industrial closures in Faisalabad, an issue that has drawn the prime minister's attention.

According to an official statement issued by the Board of Investment, the minister told participants that the prime minister had sought a comprehensive assessment of the situation along with policy-oriented recommendations from the ministry and stakeholders. He recalled that during a recent visit to the Faisalabad Industrial Estate Development and Management Company (FIEDMC), the president of the Faisalabad Chamber of Commerce and Industry (FCCI) had raised serious concerns over factory shutdowns, which later appeared in the media.

Senior BOI officials, including Additional Secretary Dr Erfa Iqbal, Additional Secretary Zulfiqar Ali and Director General Mahmood Tufail, were present. Representatives of chambers and associations were given time to outline challenges faced by the industrial sector.

FCCI President Farooq Yousaf informed the meeting that around 193 industrial units had closed in recent times, adding that detailed data would be shared with the BOI. He said Pakistan's overall tax incidence, estimated at 55-60%, was significantly higher than that of regional competitors, while electricity-related issues continued to erode competitiveness. He said chambers were united on the issue and would submit consensus recommendations, also citing figures of $15 million in exports and $34 million in imports.

APTMA Chairman Kamran Arshad described the cost of doing business as the foremost challenge, pointing to high electricity tariffs, elevated interest rates, expensive gas and tax-related issues. He said these constraints were discouraging industrialisation and job creation, adding that the tax burden continued to fall on existing taxpayers. He suggested aligning BOI efforts with industrial and commerce policies, introducing graded investment incentives and assigning export targets to trade attachés.

Briefing participants, the minister said the BOI was pursuing regulatory reforms and deregulation, including the Asaan Karobar Act and the BOI-led Business Facilitation Centre single-window initiative.