PIAF wants level-playing field for industry through cut in production cost

LAHORE:      The Pakistan Industrial & Traders Association Front has urged the government to provide level-playing field to business community, as the huge depreciation of Rupee against dollar, record high markup rate and continued hike in power and gas tariffs have escalated the cost of production unprecedentedly, hitting not only the export sector but also the local industry.
In an interactive session with the media, the PIAF leadership lamented that the cost of production has flown upward, reaching the highest level of last seven years mainly due to massive cut in Rupee value versus greenback and record high interest rate, leading to slowdown in economic growth. On this occasion, the industry leadership and senior economic journalists discussed in details the prevailing economic scenario and gave valuable suggestions in this regard.
PIAF Chairman Mian Nauman Kabir suggested a considerable reduction in the key policy rate, taking it into single digit, with a view to providing the private sector access to low-cost borrowing. He warned the government of missing its annual growth target in major sectors, stressing the need for dropping energy prices for the local industry too to stimulate industrial growth further.
While praising PM Imran Khan for reversing his decision regarding increase in power tariff for the export sector, he said that the whole industry should be given relief. He said that increases in electricity prices or additional charges to the bills are not the solution of power sector problems. He also hailed the positive growth in large-scale manufacturing after a long time, saying it would help create jobs, as the large industries have bounced back, posting a healthy growth now.
The government decision of electricity supply at regionally competitive rate to the export sector will give a significant boost to the exports.