Lahore: The Ferozepur Road Industrial Association (FRIA) has urged the government to urgently formulate a clear and actionable economic roadmap, warning that Pakistan's industrial sector is under mounting pressure as key economic indicators continue to flash warning signs.
In a statement issued on Sunday, FRIA Chairman Shahbaz Aslam cautioned that the current fiscal year could prove highly volatile, with energy shortages, surging tariffs, and policy instability severely undermining growth and investor confidence.
Citing recent data, he noted that large-scale manufacturing output contracted by 0.74 percent in FY25, despite official claims of stabilization, as high energy costs and inconsistent policies weighed heavily on the sector. While inflation has eased from recent highs, it remains elevated at 5.6 percent in September 2025, while foreign exchange reserves stood at around US$19.8 billion, still inadequate in terms of import cover and external debt obligations.
Aslam said the manufacturing, services, and export-oriented industries are in clear distress, with small and medium enterprises particularly squeezed by rising borrowing costs, potential energy blackouts, and unclear policy direction. 'There is no coherent strategy or capable team in place to handle these issues,' he remarked, adding that weak governance and policy inconsistency have become defining features of Pakistan's economic landscape.
He criticized the government's heavy reliance on IMF-prescribed measures, including currency devaluation and monetary tightening, arguing that these policies have exacerbated inflation and debt servicing burdens. 'For Pakistan, every percentage point of monetary tightening has raised inflationary pressure significantly,' he said, warning that continued uncertainty surrounding the IMF programme, combined with dwindling reserves and a weak currency, has eroded business confidence and increased overall economic risk.
The FRIA chairman called on policymakers to take bold administrative actions to curb speculative dollar demand, attract foreign investment, and restore stability to the financial system. He urged the government to gradually reduce policy interest rates, introduce industry-friendly incentives, and ensure affordable energy supplies to manufacturers.
'If immediate and concrete steps are not taken,' he warned, 'the country risks further industrial decline and job losses.'
Aslam also proposed convening a national conference of business and industrial leaders to develop a unified strategy for economic revival, stressing that the effort must move beyond rhetoric to deliver investment-oriented policies and measurable results.
Given the ongoing industrial contraction, fragile external buffers, and persistent policy uncertainty, FRIA's call for clarity and decisive action comes at a crucial time. Without urgent reform, the industrial base that sustains jobs and exports may face deeper decline.