Industrialists in Karachi’s SITE industrial area have warned the government that expensive energy, political instability and inconsistent economic policies are placing severe pressure on the country’s manufacturing sector. They say that if the government is serious about keeping factories running and protecting the economy from further damage, it must immediately end high energy costs and policy uncertainty.
SITE stands for the Sindh Industrial Trading Estate, one of Karachi’s oldest and largest industrial zones, home to factories making textiles, garments, engineering goods and many other products. The SITE Association of Industry speaks for many of these businesses, and its president, Abdul Hadi, said the government must acknowledge ground realities and take industry-friendly measures if it genuinely wants industrial growth and economic recovery.
What factories say they need
The association’s central demand is straightforward: uninterrupted supply of electricity, gas and water, political stability, and consistent long-term economic policies. Factories cannot plan production when power and gas supplies are uncertain, or when policies change at short notice. A factory that does not know next month’s energy bill or tariff cannot confidently accept a large export order or hire new workers.
The second demand is about price. The association wants electricity, gas and water tariffs reduced to levels competitive with those in neighbouring countries, so that local manufacturers can escape the constant pressure of rising production costs and keep their share in international markets. When Pakistani goods cost more to make than similar goods from rival countries, buyers abroad simply order from elsewhere.
The same pressure, from the other side
This warning arrives alongside fresh evidence of the squeeze. A separate survey of manufacturers in October found factory growth barely above zero, with input costs at a record high and export orders falling — the subject of a separate report on this site. The industrialists’ statement is the human voice behind those numbers: factory owners saying, in plain terms, that costs and uncertainty are making it hard to survive, not just hard to grow.
The same association had already warned in late October that raising the State Bank’s policy rate to 12 percent would deepen pressure on factories already facing expensive utilities and low operating capacity, urging a return to single-digit rates. Costly borrowing, costly energy and uncertain policy are therefore hitting factories from three directions at once.
What this means
For an ordinary reader, this dispute is not only about factory owners. When factories struggle, the effects spread: fewer jobs, slower wage growth, higher prices in shops, and fewer exports earning foreign currency for the country. The industrialists’ message is that Pakistan’s factories do not only need cheaper energy; they need predictability — stable supply, stable tariffs and policies that stay in place long enough for businesses to plan around them. Whether the government answers with tariff reform, steadier supply or policy stability will help decide whether manufacturing recovers or keeps drifting. This article is information only, not a recommendation to buy or sell any share.
Sources: Business Recorder, Associated Press of Pakistan via UrduPoint. Written in our own words for information only — not investment advice.