The Pakistan Industrial and Traders Associations Front (PIAF) has welcomed the government's recent announcement of Rs200 billion in tariff relief for the industrial sector. In a statement, PIAF Chairman Irfan Iqbal Sheikh expressed gratitude to Prime Minister Shehbaz Sharif and Finance Minister Muhammad Aurangzeb for addressing the long-standing demands of the business community.
Key Highlights of the Relief Package
The tariff relief, part of the federal budget for fiscal year 2025-26, includes reductions in electricity tariffs for industrial consumers, lower customs duties on raw materials, and tax exemptions for export-oriented industries. Sheikh noted that these measures would provide immediate financial breathing space to struggling manufacturers.
Need for Structural Reforms
While acknowledging the relief, PIAF emphasized that temporary measures alone cannot ensure sustainable industrial growth. The association called for comprehensive reforms in energy pricing, taxation, and ease of doing business. "Pakistan's industrial sector faces deep-rooted challenges, including high input costs, policy inconsistency, and bureaucratic hurdles," Sheikh stated.
- Energy Pricing: PIAF urged the government to create a competitive energy tariff structure for all industrial zones.
- Taxation: Simplification of the tax system and removal of withholding tax on inter-corporate dividends were demanded.
- Export Facilitation: Immediate release of pending sales tax refunds and duty drawback claims was requested.
Call for Long-Term Industrial Policy
PIAF proposed the formation of a National Industrial Commission comprising government officials, industry experts, and business leaders. This commission should draft a 10-year industrial policy focusing on value addition, technology upgradation, and export diversification. "Without a clear roadmap, sporadic relief measures will not revive the manufacturing sector," Sheikh added.
The association also highlighted the need for improving the ease of doing business rankings by digitizing regulatory approvals and reducing compliance costs. PIAF assured its full cooperation with the government in implementing these reforms for the economic prosperity of the country.
