Leading business representatives on Thursday warned that Pakistan’s economic recovery remains at risk due to record-high energy tariffs and an interest rate they say is stifling industrial growth.

Speaking at a press conference at the Federation House, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Atif Ikram said Pakistan stands “at a decisive economic turning point” and must prioritise stability.

He said energy prices and the prevailing policy rate have emerged as the biggest obstacles to competitiveness.

“Electricity tariffs in Pakistan are among the highest in the region compared to other countries,” he noted.

United Business Group (UBG) Patron-in-Chief S.M. Tanveer said that the Pakistan has won the “Marka-e-Haq” and became the “Asian tiger”.

Now it is the time to win the “battle for economic revival,” and transform into an “economic tiger.”

Questioning the rationale behind the current 11 per cent policy rate, he asked why it could not be reduced to 7 per cent to ease the cost of capital for industries.

Tanveer said the government carries liabilities of Rs54 trillion and is paying Rs2 trillion annually in interest alone.

“Who will question the Monetary Policy Board about why an additional Rs2 trillion was spent in a single year?” he said.

On electricity pricing, he said power cost had fallen from 15 cents to 11 cents due to adjustments in IPP payments but has since climbed back to 13 cents and is expected to rise again to 15 cents.

Capacity charges continue to surge, he added, forcing several industrial units to shut down and pushing households towards solar solutions.

Business leaders urged the government to rationalise tariffs and create a stable policy environment, warning that without urgent action, economic revival will remain out of reach.