Is the government trying to hide the economic condition?

Pakistan is facing an energy crisis, and the high tax on electricity is increasing the stress for all industrial and trade leaders. They clarify that it is almost impossible to meet the export target of $60 billion in the next three years. Amir Aziz, an exporter and manufacturer in the textile sector, added that the government is not taking the issue seriously. “We are unable to take orders because of the high production costs,” he said.

On Thursday, the All Pakistan Textile Mills Association (APTMA) requested the government to reduce the interest rate to 6-7%. Exports have continuously declined from $19.3 billion in FY22 to $16.7 billion in FY24. Exporters are citing high income taxes and especially the increased electricity rates as reasons for this decline. The 2024 budget has introduced a lot of taxes on exporters.

Zahid Mazhar, Chairman of APTMA’s South Zone, also informed about the closure of 30% of mills due to increased electricity rates and high-interest rates. Many people are losing their jobs. In South Asia, Pakistan is facing a high interest rate of 19.5%, which is higher compared to India and Bangladesh.