ISLAMABAD: The business community has expressed strong opposition to the government's newly introduced solar policy, urging the authorities to revert to the previous framework.

In a press conference held in Islamabad, the President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Atif Ikram Sheikh, rejected the new policy, criticizing the government's decision to purchase solar electricity at Rs10 per unit instead of the previous Rs27 per unit, deeming it "unacceptable." S.M. Tanveer, Patron-in-Chief of the United Business Group, raised concerns about the government's delay in negotiations with state-owned Independent Power Producers (IPPs). He argued that timely discussions could have reduced electricity costs by more than Rs4 per unit.

Furthermore, Tanveer pointed out the unresolved issues surrounding bagasse-based IPPs, which have yet to be finalized, further complicating the electricity pricing landscape. Tanveer also highlighted the dire situation faced by industries across Pakistan, with Rs500 billion worth of industries having shut down due to uncompetitive costs and unfavorable economic conditions. This has led to the loss of approximately one million jobs, exacerbating the unemployment crisis in the country. He called on the government to bring down interest rates to single digits to help revive the industrial sector, which has been severely impacted by the high cost of credit. In addition to addressing energy pricing concerns, Tanveer stressed the need for a long-term industrial strategy to restore economic growth and ensure business sustainability.

The business community's rejection of the new solar policy reflects wider frustration over the government's handling of key economic issues, particularly energy pricing, which remains a significant challenge for businesses and industries in Pakistan.

The demand for reforms in both the energy and industrial sectors underscores the urgent need for comprehensive economic policies that prioritize business growth and job creation.