Lahore Chamber Calls for Urgent Reduction in Gas Prices to Boost Exports

Lahore: The Lahore Chamber of Commerce and Industry has emphasized the critical need for reducing energy costs by lowering gas prices and promoting alternative energy resources, crucial for sustaining industrial growth and enhancing export competitiveness in the country. The call comes amid rising energy prices that threaten the competitiveness of Pakistani products in global markets.

The Oil and Gas Regulatory Authority’s decision to increase fixed charges for domestic gas consumers by 50% and gas tariffs for industrial users by up to 17% from July 2025 has raised concerns among manufacturers and exporters. The Lahore Chamber’s leadership highlighted that energy costs in Pakistan are already significantly higher than those in neighboring countries, adding to the cost pressures faced by local industries.

The chamber officials stressed the importance of renewable energy sources like hydel, solar, and wind power to ensure sustainable energy production at a lower cost. They pointed out that reliance on expensive LNG, especially during gas shortages in winter, further escalates production costs and undermines economic competitiveness.

A reduction in gas and utility tariffs, they argued, would make Pakistani goods more competitive abroad, boost exports, and generate essential foreign exchange reserves. The officials noted that high energy costs are a major barrier to realizing Pakistan’s export potential and urged the government to adopt a long-term energy pricing strategy in consultation with the business community.

The chamber believes that lowering energy prices would have a multiplier effect on the economy, spurring industrial activity, job creation, and investment while reducing the trade deficit. They called on the government to provide a stable policy environment to support the private sector’s role in driving economic growth.

Chamber representatives remain hopeful that the government will take prompt action to address these concerns, viewing the reduction in gas and utility prices as an economic necessity rather than merely an industrial demand.