Industry ‘tight-lipped’ over Naqvi’s remarks

A warning from Interior Minister Mohsin Naqvi has deeply shocked trade and industry leaders in Pakistan, though they remain tight-lipped when asked for comments on the situation. Naqvi declared that the governance system had collapsed and was unable to address critical challenges, urging the creation of new administrative units. However, trade and industry leaders were reluctant to publicly comment on the implications of his statement, describing it as a political, not an economic one.

Senior Vice President of the Federation of Pakistan Chamber of Commerce and Industry, Saqib Fayaz Magoon, acknowledged the challenges Pakistan faces, including high energy costs that hinder economic growth and prevent exportable products from competing globally. Magoon emphasized the need for tax and business reforms, alongside ease of doing business, to facilitate trade and industry development.

Most trade and industry leaders were hesitant to comment on the collapse of the system, attributing it to a political framework instead. They expressed uncertainty, particularly in the face of ongoing geopolitical tensions such as the US-Iran war, fluctuating energy prices, and the broader instability in the Middle East. Magoon noted that unless the war ends, foreign investments would remain elusive, and domestic investors are eagerly waiting for a resolution.

Some business insiders supported Naqvi's assertion that the governance system is indeed collapsing, suggesting that trade and industry would need to exercise greater caution. This cautious approach could adversely affect economic growth, which is already struggling to break into the 3.2 to 3.7 percent growth range. Investment, they agreed, is crucial for economic rejuvenation, and the current geopolitical uncertainty poses a significant threat to attracting both domestic and foreign investments.