Energy Costs and Political Instability Threaten Pakistan’s Manufacturing Sector, warn SITE Industrialists
Karachi (Pakistan News) Industrialists operating in the SITE Area have issued a warning to the government, stating that skyrocketing energy tariffs, ongoing political instability, and inconsistent economic policies are putting severe pressure on Pakistan’s manufacturing sector. They cautioned that unless the government takes immediate action to eliminate high energy costs and address policy uncertainty, the survival of existing industrial units will be critically compromised.
In an official statement, SITE Association of Industry (SAI) President Abdul Hadi urged policymakers to acknowledge ground realities and implement industry-friendly economic reforms to drive industrial growth and support economic recovery.
Highlighting key requirements for sustainable industrial activity, Hadi emphasized that an uninterrupted supply of electricity, gas, and water, along with political stability and long-term economic planning, is imperative. To ensure local manufacturers remain competitive in global markets, Pakistan’s overall cost of production must be aligned with regional competitors.
To resolve the crisis, the SAI chief advocated for comprehensive energy sector reforms, calling for electricity, gas, and water tariffs to be reduced to levels matching neighboring countries. Lowering input costs, he noted, is essential for local exporters to retain their international market share.
Addressing the broader business climate, Hadi noted that persistent political uncertainty is eroding international buyers’ confidence, harming export orders, and deterring foreign direct investment. He demanded a predictable, transparent, and stable tax regime, alongside significant interest rate cuts to bring domestic borrowing costs in line with regional benchmarks.
Concluding his statement, Hadi urged the government to move past verbal assurances of economic recovery and execute practical measures immediately. Without restoring investor and industrialist confidence, critical outcomes such as industrial expansion, job creation, and export growth will remain unachievable, leaving the manufacturing sector at high risk.