
KCCI urges govt to re-evaluate its energy procurement & pricing strategies
Bilwani emphasized the need to continue purchasing Regasified Liquefied Natural Gas (RLNG) under existing agreement with Qatar but suggested that it be sold to industries at a reduced rate. The pricing gap, he proposed, can be bridged by supplying indigenous gas to captive power plants at lower rates. This, in turn, would ensure sufficient gas supply to industries at affordable rates, enhance productivity, create employment opportunities and prove favourable for the economy.
Bilwani highlighted that the import of RLNG, via six vessels per month, costs the country approximately Rs50.5 billion monthly. He proposed that this gas be provided to industries at Rs40 billion, while the remaining Rs10.5 billion be offset through the supply of locally available lower-cost gas.
'The current energy pricing structure is unsustainable for our industries,' he said. 'With soaring energy tariffs, elevated taxes, and high interest rates, our industries cannot compete effectively on the international stage.'
He warned that suspending the supply of 400 million cubic feet per day (mmcfd) of indigenous gas to regions under the Sui Northern Gas Pipelines Limited (SNGPL), including Punjab and Khyber Pakhtunkhwa while relying more on expensive RLNG, poses a serious threat to the industrial sector and the national economy.
Bilwani stressed the urgent need to foster an enabling environment to promote industrial growth and enhance exports.
He noted that due to the sharp rise in gas tariffs, many industrialists have been forced to revert to biomass sources like rice husk, mustard, sunflower, maize waste, and even cow dung to generate steam, finding it more economical than using industrial gas connections.
'Pakistan currently has among the highest industrial gas rates globally,' Bilwani said. 'It's unfortunate that, to deal with load-shedding and erratic electricity supply, the government itself advised industrialists to invest in captive power plants.
Following this advice, businesses spent billions on gas generators, boilers for waste heat recovery, and chillers that utilized jacket water to produce free steam and cooling. All of these installations are now rendered ineffective and financially wasteful.'
Bilwani also criticized the government's over reliance on International Monetary Fund (IMF) conditions, stating that such policies are being used to justify decisions that severely harm the industrial base.
He urged for meaningful consultation with stakeholders to devise balanced, sustainable energy strategies that consider both fiscal constraints and industrial needs.
'We need a clear roadmap that prioritizes the viability of our industrial sector,' he asserted. 'It's time to move beyond temporary fixes and focus on long-term, strategic planning that ensures economic stability and global competitiveness.'
Bilwani concluded by stressing that expecting industries to compete internationally while being burdened with the most expensive energy, excessive taxes, and high interest rates is simply unrealistic.
'If the government or the Prime Minister wants us to compete globally, they must first provide a conducive environment,' he said. 'In the current scenario, I cannot understand how industries are expected to survive let alone thrive.'
Copyright Business Recorder, 2025
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Express Tribune
3 hours ago
- Express Tribune
Economic halt as nation strikes
Listen to article Pakistan's business and industrial community observed a nationwide strike on Saturday, protesting Sections 37A, 37B, and 37AA of the Income Tax Ordinance, which grant the Federal Board of Revenue (FBR) powers to arrest defaulting taxpayers. The shutter-down strike, led by major trade bodies and industrial associations, saw thousands of markets, factories, and commercial units closed across the country in what business leaders called a unified stand against "draconian and anti-business" laws. The protest was led by major trade bodies, including the Karachi Chamber of Commerce and Industry (KCCI), the Pakistan Hosiery Manufacturers and Exporters Association (PHMA), and various industrial town associations. It was held in strong opposition to the controversial new tax laws introduced through the Finance Act 2025-26. "The complete shutdown of markets, industries, and commercial activities reflected a powerful message of economic unity and collective resistance by Pakistan's business community," KCCI President Muhammad Jawed Bilwani said in a statement issued on Saturday. Bilwani emphasised that the strike was not an act of defiance, but a last resort adopted in response to the government's failure to address widespread concerns raised by the business community. Despite several representations and appeals, key anti-business provisions were included in the Finance Act 2025-26 that have created an atmosphere of fear, uncertainty, and hostility among taxpayers. The business community's key demands, which remain unresolved, include the immediate suspension of Sections 37A and 37B of the Income Tax Ordinance, which grant unchecked powers to arrest and prosecute taxpayers without due process; the withdrawal of Section 21(s), which imposes penalties on transactions made through cash, mode of payment still widely used in Pakistan's business landscape, and the restoration of the Final Tax Regime for exporters. He said these demands were conveyed in detail to the special committee formed by the federal finance minister and headed by the Special Assistant to the Prime Minister (SAPM) on Finance, Haroon Akhtar Khan. The business community expected meaningful outcomes based on the recommendations and rationale submitted to this committee. However, only verbal assurances were given, which further intensified frustration and compelled businesses to demonstrate their discontent through a peaceful and united shutdown. "The business community observed a peaceful strike to show their protest against absurd laws and express solidarity; however, the closure of business and economic activities is not in the national interest," said Sheikh Mohammed Tehseen, President of the Federal B Area Association of Trade and Industry (FBATI). He added that the government should repeal these oppressive laws and offer confidence and protection to businessmen and investors. President of SITE Super Highway, Masood Pervaiz, said that the business community is open to consultations with the government to enhance tax revenue and curb tax evasion without any harassment or stringent attitudes. He suggested that the government work actively with the business community towards digitisation in the economic and governance systems to achieve multiple national objectives. He also urged the government to promote ease of doing business and reduce production costs for businesses and trade in the country. President of the Lahore Chamber of Commerce and Industry (LCCI), Mian Abuzar Shad, said that July 19, 2025, will go down in history as a defining day of awareness, unity, and struggle by Pakistan's business community. "Lahore has proven today that it is not just a city – it is a sentiment, a force," he said, demanding urgent revisions and clarifications on Section 37AA, implementation of the e-invoicing and e-Bilty systems, the 16% sales tax on property rent, and the 20% tax on transactions above Rs200,000. The Pakistan Hosiery Manufacturers and Exporters Association (PHMA) also joined hands with chambers and trade bodies across the country in a complete industrial shutdown to protest the controversial arrest powers granted to the FBR. Zonal Chairman of PHMA, Abdul Hameed, along with former chairmen Shafiq Butt and Naseer Butt, announced the closure of hosiery units as part of the countrywide strike, warning that such legislation would only deepen the crisis facing Pakistan's export-oriented sectors. The PHMA leadership said the business community could no longer remain silent while draconian laws continued to erode the confidence of investors and exporters. They said PHMA's participation in the strike was not symbolic but a complete operational shutdown in protest against what they termed economic strangulation by the government's policies. Abdul Hameed expressed grave concern over Section 37AA, which gives FBR officers the authority to arrest businesspersons without due process or prior investigation, merely on suspicion of tax evasion. He said this law is a clear violation of constitutional rights and a serious blow to the already fragile industrial environment of Pakistan.


Business Recorder
8 hours ago
- Business Recorder
Trade-industry unity makes strike successful
KARACHI: A rare and powerful show of unity between industrialists and traders brought Karachi and other parts of the country resulted in a standstill on Saturday, as businesses observed a shutter-down strike against the government's controversial tax policies introduced under the Finance Act 2025–26. The strike, led by the Karachi Chamber of Commerce and Industry (KCCI), drew massive support from major industrial town associations, transporters, and a broad spectrum of trade bodies. It signalled growing frustration with what the business community described as 'harsh, impractical, and anti-business' fiscal measures. In Karachi, the country's economic hub, industrial zones, wholesale markets, commercial districts, and even goods transport services came to a grinding halt. Seven key industrial zones—SITE, Korangi, Landhi, North Karachi, Bin Qasim, SITE Super Highway, and Federal B Area—fully observed the strike. The megacity's commercial lifelines, particularly in District South, remained deserted. Historic markets in the Old City Area such as Kapra Market, Motandas, Kagzi Bazar, Boulton Market, and Jodia Bazar were fully shut. Auto parts hubs, including Garden Market, Plaza Auto Market (MA Jinnah Road), Aurangzeb Market, and Iqbal Centre followed suit. Gold and jewellery traders at Liaquatabad's Sarafa Market also downed shutters, as did timber merchants and paper dealers. In an unusual disruption, Karachi's Sabzi Mandi witnessed near-total inactivity. 'Trucks carrying fruits and vegetables did not arrive today,' said Atta Ur Rehman, a fruits and vegetables retailer. 'This strike has brought the Mandi to a halt—a historic move in recent years.' Goods transporters too halted operations across the city. Malik Shabbar Khan, Patron-in-Chief of the United Goods Transport Alliance, said both his group and the Pakistan Goods Transport Alliance suspended bookings nationwide. 'Our trucks have been parked for five days. If the government fails to act, we may consider regular weekly strikes,' he warned. Speaking on the day of the strike, KCCI President Muhammad Jawed Bilwani said the unprecedented shutdown sent a clear message to the government about the depth of discontent in the business community. 'This was not an act of rebellion, but a necessary step after repeated government failures to address our legitimate concerns,' Bilwani stated. He expressed gratitude to all associations and traders who supported the call and praised the unity of Karachi's seven industrial zones. While the strike received sweeping support in Karachi and other cities, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) decided to postpone its protest following last-minute talks with the government. This led to a partial division among national trade bodies. Despite this, Mehmood Hamid, President of the All Pakistan Organization of Small Traders and Cottage Industry (Karachi Chapter), claimed the strike was an unqualified success. 'The strike spoke louder than words,' he said. 'Markets and industries across Karachi remained shut.' Hamid accused the FPCCI of attempting to divide the movement and neutralize the traders' protest. 'Even so, the momentum remained unbroken. The southern district of Karachi, including all major wholesale and commercial zones, observed a complete closure.' He confirmed that overnight talks between traders and the government failed, triggering the mass-scale shutdown. 'The industry cannot absorb tax measures of this magnitude anymore,' Mehmood Hamid said. 'The government has expanded the FBR's powers to a level where economic activity is now under threat.' He emphasized the need to repeal not only Sections 37A and 37B. 'If the government provides even a 40 percent relaxation and makes sincere efforts to reform the Finance Bill, we will respond constructively,' he added. Support for the strike extended to Hyderabad, where markets in Saddar Bazaar, Resham Bazaar, Anaj Mandi, and Market Tower remained closed. Copyright Business Recorder, 2025


Business Recorder
8 hours ago
- Business Recorder
‘Successful' strike conveyed a strong message: KCCI chief
KARACHI: President Karachi Chamber of Commerce & Industry (KCCI) Muhammad Jawed Bilwani, while expressing deep gratitude and heartfelt appreciation to the entire business community for their unwavering support and solidarity in making Saturday's nationwide shutter-down strike a success, stated that the strike, jointly called by KCCI and leading Chambers, as well as, other national trade and industry associations, was held in protest against the harsh, impractical, and anti-business taxation measures introduced through the Finance Act 2025–26. The complete shutdown of markets, industries, and commercial activities reflected a powerful message of economic unity and collective resistance by Pakistan's business community, he said in a statement issued here on Saturday. He emphasised that the strike was not an act of defiance, but a last resort adopted in response to the government's failure to address widespread concerns raised by the business community. Despite several representations and appeals, key anti-business provisions were included in the Finance Act 2025–26 that have generated an atmosphere of fear, uncertainty, and hostility among taxpayers. The business community's key demands, which remain unresolved, include the immediate suspension of Section 37A and 37B of the Income Tax Ordinance, which grant unchecked powers to arrest and prosecute taxpayers without due process; withdrawal of Section 21(s), which imposes unjust penalties on transactions made through cash, a mode of payment still widely used in Pakistan's business Bilwani said that these demands were conveyed in detail to the special committee formed by the Federal Finance Minister and headed by Special Assistant to the Prime Minister (SAPM) on Finance, Haroon Akhtar Khan. The business community expected meaningful outcomes based on the recommendations, and rationale submitted to this committee. However, only verbal assurances were given, which further intensified the frustration and compelled businesses to demonstrate their discontent through a peaceful and united shutdown. He extended particular thanks to the seven industrial town associations of Karachi: SITE Association, Korangi Association, Landhi Association, North Karachi Association, Bin Qasim Association, SITE Super Highway Association, and Federal B Area Association for their resolute and unified response. He also acknowledged the contributions of various sectoral organisations and trade groups including the Pakistan Hosiery Manufacturers & Exporters Association (PHMA), Pakistan Knitwear & Sweater Exporters Association, Karachi Electronic Dealers Association, Sabzi Mandi Association, Local Goods Transporters Association, Kabari Market Association, and Pakistan Petroleum Dealers Association. Furthermore, he expressed appreciation to fellow Chambers of Commerce & Industry from different parts of Pakistan whose active participation reinforced the voice of unity and economic justice. Bilwani made it clear that the July 19 strike was only the first step. He stated that the Karachi Chamber will closely monitor the progress of the Committee led by SAPM Haroon Akhtar during the coming week, particularly with regard to the incorporation of the recommendations provided by KCCI and allied trade bodies. The Chamber expects concrete commitments and actionable reforms in the shortest possible time, as any further delays will be seen as a continuation of disregard for the business community's legitimate grievances. 'If we do not see any meaningful progress or written assurances by the end of next week, we will hold urgent consultations with Members, sectoral stakeholders, and Chambers of Commerce across the country to determine the next course of action.' He said we want dialogue, not confrontation. But if our concerns continue to be ignored, we will not hesitate to intensify our course of action. We remain committed to protecting Pakistan's economy, but that cannot happen unless the business community is heard, respected, and supported. However, President Federal B Area Association of Trade and Industry (FBATI) Sheikh Mohammed Tehseen said that closure of the industrial and trading units countrywide reflects the unity of the business community against absurd laws for giving undue powers to the tax authority. The business community observed a peaceful strike to show their protest and express solidarity; however, the closure of business and economic activities is not in the favour of national interest President SITE Super Highway Masood Pervaiz said that the businessmen community is open for holding consultation with the government for enhancing tax revenue and curbing tax evasion without any element of harassment and stringent attitude. He suggested that the government should work aggressively with the business community towards adoption of digitization in the economic and governance system to achieve multiple objectives at a national level. Also, the government should promote ease of doing business and reduce production costs for business and trade in the country. Copyright Business Recorder, 2025