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ISLAMABAD, Jul 29 (APP):Federal Minister for Commerce Jam Kamal Khan on Monday pledged the ministry’s full support in addressing the pressing issues impacting the business community during a virtual meeting with Gujranwala Chamber of Commerce and Industry.
The meeting highlighted several critical challenges, including Pakistan’s disproportionately high electricity costs, which are hampering the country’s ability to compete internationally, said a news release.
During the meeting, the representatives of the Chamber stated that Pakistan’s electricity costs, at 20 cents per unit, far exceed those of regional competitors such as India and Bangladesh, where costs are around 4 cents per unit.
The minister acknowledged that the high electricity tariffs have severely hindered the competitiveness of Pakistani industries in the global market, thereby stifling export growth.
“We can’t compete with the international market and can’t increase exports unless we address the issues related to cost of production,” he emphasized.
Representatives from the auto industry also voiced their concerns, specifically requesting a review of import policies and an increase in import quotas to meet international standards for motorcycles and rickshaws.
They revealed that out of 190 auto industries in Pakistan, only 10 are currently operational, attributing this decline to their inability to meet global market demands.
In response, the minister encouraged the industry to submit a detailed proposal to enhance exports, promising to raise these concerns with the Industries Minister.
Additionally, chamber members proposed establishing “China Town” type models in Saudi Arabia and the UAE to promote small and medium-sized enterprises (SMEs) and local production.
They suggested these hubs could provide a platform for Pakistani products.
The minister informed the participants that plans are already underway to establish warehouses in Saudi Arabia, the UAE, and China to support these initiatives.
He acknowledged the validity of the chamber’s concerns and assured them that Prime Minister Shehbaz Sharif is taking these issues seriously. “The main issue in the country today is energy.
Power consumption is a big issue now; when consumption increases, production will increase, and ultimately exports will increase,” he explained.
He noted that while Pakistan benefits from a cheap labor force, reducing energy costs is crucial for cost-effective production.
The minister mentioned ongoing coordination with the relevant ministries to find solutions and expressed hope for a resolution soon.
He also highlighted the need for a better governance model to address these issues effectively.
Discussions also covered the need for international certifications, with suggestions to form joint ventures with globally recognized labs to save time and costs in achieving certification for steel products.
Furthermore, the functioning of the Trade Development Authority of Pakistan (TDAP) was reviewed.
Jam Kamal Khan suggested that TDAP requires significant revamping, recommending it to be divided into two regions to grant it more autonomy and make it more accessible and effective for the business community.
The meeting concluded with a commitment from the commerce ministry to continue working closely with the business community to resolve these critical issues and bolster Pakistan’s export capabilities.