Many factories in Pakistan are closing, worrying business leaders. They say if the government doesn’t act fast, it could harm the economy. The two-tier tax system is a big problem, making it hard for factories to operate. Some factories fake production in certain areas to avoid taxes. Business leaders want the government to make better long-term plans.
The former president of the Karachi Chamber of Commerce and Industry, Majyd Aziz, says many ads in newspapers complain about government policies. This scares away both local and foreign investors. He says high electricity rates are also hurting factories in Karachi.
Other problems include competition from smuggled goods and low consumer spending. When factories close, people lose jobs, leading to more crime. Business leaders urge the government to focus on law and order.
The president of the Hyderabad Chamber of Small Traders and Small Industry, Muhammad Farooq Shaikhani, says energy problems and high costs are causing many industries to shut down. He suggests a one-window system to make starting a business easier. Bad contracts with power producers make things worse, raising production costs.
Continuity in policies is crucial for attracting foreign investors and keeping businesses running.
Opinion: It’s worrying to see so many factories closing in Pakistan. The government needs to act fast to fix these problems and create a better environment for businesses. Otherwise, things will only get worse, leading to more job losses and economic troubles.
