Muhammad Saleem

Affordable electricity and tax exemptions can help make full use of the economic zones and create jobs. Waheed Khaliq, a small and medium enterprise development specialist, told WealthPK that the high cost of energy and the burden of taxes are crippling the industry, causing unemployment. He said that the business landscape is changing with every passing day, and the industry needs support tailored to its specific needs.

He said that sensing the changing scenario the government must provide special facilities at the economic zones to strengthen the economy and create more jobs. Khaliq said that for years, industrialists and the business community have been warning that expensive energy is proving to be a blow to the struggling business sector, but the authorities are turning a blind eye to it. “Nobody bothered to pay heed to these critical issues.

Now, the industrial sector is finding it difficult to sustain and provide jobs,” he added. The export-oriented industries, like textiles, manufacturing and technology should be given priority in tax exemptions and low- cost energy, he said, adding that these sectors have significant growth potential and can create job opportunities. Ijaz Ahmed, an industrialist, told WealthPK that the government is mulling establishing specialised zones for industries like pharmaceuticals and food processing.

“However, this approach will not serve our purpose as the existing industries are struggling to sustain due to the high cost of raw materials, energy and heavy taxes.” “First, we have to support the struggling sectors, and then we can plan for future advancements,” he said. He highlighted that a vast area of the economic zone in Faisalabad remains unused. Similarly, he pointed out that one could check the current state of facilities at the Khurrianwala Industrial Area, Millat Town Industrial Area and Punjab Small Estate Industrial Area.

“We have to focus on these areas by providing affordable energy, and tax exemptions.” Hazar Khan, Vice-Chairman of Pakistan Hosiery Manufacturers and Exporters Association, said that industrialists are demanding a level playing field and cheap electricity for growth. He said recently the government formed a committee tasked with reviewing the Export Facilitation Scheme, but it was ironic that the knitwear sector, which is the largest export earner, was not made part of this body.

He said the government needs to focus on such sectors with the potential to strengthen the national economy. Khan said that the textile sector, particularly the knitwear industry, is significantly contributing to the country’s export goals and economic growth. “However, ignoring such sectors will undermine their contribution,” he added. Ahmed, the industrialist, suggested the government provide incentives to industrialists willing to install on-site power generation systems for their units.

He said that it is the need of the hour to invest in smart grid technologies. “This strategy will improve the efficiency and reliability of our electricity infrastructure,” he said. He said Pakistan is blessed with wind and solar energy, and the country should tap this potential. “We need to establish dedicated power lines for the industrial zones to minimise the risk of disruptions from the broader grid,” he suggested.

Credit: INP-WealthPk