Energy Will Determine the Survival of Industry – LCCI Senior Vice President Engineer Khalid Usman:
Karachi: Commerce Desk: Former President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), ex-President of the Lahore Chamber of Commerce and Industry (LCCI), and Chairman of the Businessmen Panel, Mian Anjum Nisar, has said that the adverse impacts of the 1971 nationalization policy, initiated during the tenure of former Prime Minister Zulfikar Ali Bhutto, are still haunting the country’s economy.
Speaking to a delegation from the Council of Economic and Energy Journalists (CEEJ), Mian Anjum Nisar said that successive governments further weakened the local industrial base by entering into ill-conceived Free Trade Agreements (FTAs). “Due to international pressure or a lack of understanding, we signed FTAs with countries whose industrial capacities and cost structures were far beyond ours. Competing with China, whose production costs are significantly lower, is not feasible for Pakistan’s industry. By signing an FTA with China, we essentially signed away our own industrial sustainability.”
He criticized the Independent Power Producer (IPP) contracts, calling them another major burden on the economy. “Pakistan required only 26,000 MW of electricity, but contracts were signed for 45,000 MW, even though the transmission infrastructure cannot support that capacity. Most of these IPPs are owned by Pakistani investors who have already recouped their investment multiple times, yet the government remains silent.”
Referring to global trade policies, he pointed out how the United States imposes tariffs to protect its local industries, while Pakistan, in contrast, “is harming itself through poor policy decisions.”
“The last two years have been economically turbulent,” he added. “Much of the damage to our economy has come from weak political leadership and the absence of consistent and long-term economic planning. Every incoming government acts unilaterally, without consultation, assuming they know everything. Except for the Ayub Khan era, all other regimes have pushed us backwards while the rest of the world moved forward.”
He praised the Lahore Chamber of Commerce, stating that it is the first chamber in Pakistan where Research & Development (R&D) has been made a cornerstone of policy-making. “No decision is made individually—everything is done in group consultation. After the resignation of LCCI President Abuzar Shad, Faheem ur Rehman Sehgal will serve as the new President.”
Also speaking on the occasion, Engineer Khalid Usman, Senior Vice President of LCCI, emphasized the importance of energy for the future of Pakistan’s industry. “If our industry is to survive, energy will play the most vital role. Based on current hydropower agreements, it appears that Pakistan will not be in a position to compete with the region in energy efficiency for several years.”
He added that the Lahore Chamber’s infrastructure is fully focused on member welfare and facilitation. “Our R&D and other initiatives are playing a constructive role in strengthening the national economy.”
Also present at the meeting were former LCCI President Muhammad Ali Mian, KPT Trustee, new LCCI President Faheem ur Rehman Sehgal, and Executive Member Malik Ahad Ameen.