Targeting $100 billion in exports in five years

LAHORE:

Federal Minister for Industries and Production Rana Tanveer Hussain said the government is committed to economic recovery through partnership with the business community. He highlighted the decisive measures taken by Prime Minister Shehbaz Sharif, which were instrumental in stabilizing the economy.

Speaking at the Lahore Chamber of Commerce and Industry (LCCI) on Saturday, the minister underlined the prime minister’s consistent call for an “Economy Charter” to ensure sustainable economic progress. He praised the economic reforms initiated during various tenures of the PML-N government, particularly the economic policy reforms introduced by the Nawaz government in the 1990s, which he noted were adopted by former Indian Prime Minister Manmohan Singh and continue to benefit the India today.

Hussain said the review of agreements with Independent Power Producers (IPPs) had led to lower electricity costs, with further reductions expected by April to lower generation costs. He added that interest rates were reduced from 22% to 12% within ten months, although the State Bank of Pakistan (SBP) remains independent, limiting government intervention in its policies.

The minister called for investment in research and development, emphasizing support for the industrial and agricultural sectors. He encouraged exporters to focus on value addition and explore emerging markets such as Central Asia and Africa. He also announced plans to reduce land prices in Special Economic Zones (SEZs) and Export Processing Zones (EPZs) and to develop SEZs on Pakistan Steel Mills land.

Commenting on the Federal Board of Revenue (FBR) policies, Hussain described them as obstacles to growth due to excessive taxation. He urged the business community to target $100 billion in exports over five years, surpassing the government’s target of $60 billion. The minister also commended the LCCI for its proactive approach in addressing business challenges and congratulated its leadership.

LCCI President Mian Abuzar Shad raised concerns over rising power costs, Maximum Demand Index (MDI) charges on idle industrial units and the high policy rate, which, though reduced to 13%, remains uncompetitive compared to the peripheral countries. He stressed the need to cut interest rates to single digits to encourage investment.

The LCCI president also highlighted the exorbitant prices of industrial land, which have reached Rs 50 million per acre, as a major barrier to investment and competitiveness of exporters in global markets. He emphasized the importance of ensuring the availability of raw materials, such as metals, steel and textiles, and urged the imposition of tiered tariffs to avoid industrial distortions.