Karachi Business Leaders Voice Concerns Over Energy Costs, Urge Political Stability in Meeting with PM Sharif

In a meeting with Prime Minister Shehbaz Sharif on Tuesday, prominent business leaders from Karachi expressed serious concerns about the high cost of energy and inconsistent government policies that are making it "almost impossible" to do business in Pakistan. The business community urged the PM to focus on bringing political stability, initiate trade talks with India, and reconcile with imprisoned former PM Imran Khan to help revive the country's struggling economy.

Arif Habib, chief of the Arif Habib Group and a leading voice in Karachi's business community, commended the government's recent progress on securing an IMF deal but highlighted three key issues hindering businesses: high inflation, high interest rates, and high energy prices and taxation. Habib suggested that a cut in interest rates and tax rates could provide significant savings for the government and benefit businesses. He also called on the PM to extend handshakes to all neighbors, including India, to improve regional stability and economic prospects.

Why this matters: Pakistan's economy has been wrestling with multiple challenges, including high inflation, dwindling foreign exchange reserves, and political instability. The concerns raised by Karachi's business leaders emphasize the pressing need for the government to address these issues and create a more conducive environment for businesses to operate and thrive. Engaging with regional partners like India could also open up new avenues for trade and economic cooperation.

During the meeting, industrialist Zubair Motiwala warned that rising costs would allow competitors to take over Pakistan's export orders and stressed the need for genuine industrial and agricultural growth to double exports in the next five years. The business leaders demanded fair energy tariffs, reduction in capacity charges, and a scheme to lower flat tariffs for industrial consumers to help them remain competitive.

PM Sharif acknowledged the importance of Karachi's business community and assured them of the government's commitment to pursuing privatization with transparency. He expressed confidence that with the support of the business community, Pakistan's exports could double in the next five years. The PM also outlined plans for a comprehensive policy framework to boost exports, alleviate foreign exchange reserve challenges, and combat smuggling.

The meeting between Karachi's business leaders and PM Sharif highlighted the pressing economic challenges faced by Pakistan and the need for urgent action. As Motiwala stated, "We have already missed the bus and cannot afford to lose any more time in addressing the issues facing our economy." The government's willingness to engage with the business community and consider their concerns is a positive step, but concrete measures and consistent policies will be crucial in reviving Pakistan's economic growth and attracting investment.

Key Takeaways

• Karachi business leaders expressed concerns over high energy costs, inconsistent policies
• Urged PM to focus on political stability, trade talks with India, reconcile with Imran Khan
• Suggested interest rate and tax cuts to benefit businesses and government savings
• Warned rising costs could lead to loss of export orders, called for fair energy tariffs
• PM acknowledged concerns, promised transparent privatization, plans to boost exports