Conversation with the President of FPCCI, Atif Ikram Sheikh

Atif Ikram Sheikh is a prominent Pakistani business leader and the current President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI). He has held several key positions in various trade bodies, including serving as the former Vice President of FPCCI and former President of the Islamabad Chamber of Commerce & Industry. Additionally, he is a lifetime special member of the Confederation of Asia-Pacific Chambers of Commerce & Industry and a lifetime member of the SAARC Chamber of Commerce & Industry.

Beyond his roles in trade organizations, Mr. Sheikh is a successful entrepreneur with ownership of multiple companies across diverse sectors. His business ventures include Hafeez Iqbal Oil & Ghee Industries (Pvt.) Ltd., Mujahid Enterprises Hattar, Gul Edible Oil Refinery (Pvt.) Ltd., and Mujahid Steel Industries (Pvt.) Ltd., among others.

In recognition of his contributions to Pakistan's business community, Mr. Sheikh has received numerous honors and awards. These accolades include the Export Trophy Award conferred by the President of Pakistan for the years 2014 and 2015, the Young Entrepreneur Exporter Award 2018 by the Prime Minister of Pakistan, and the FPCCI Award in 2019 and 2020.

Under his leadership, FPCCI continues to play a pivotal role in advocating for the interests of Pakistan's private sector, promoting exports, encouraging foreign investment, and stimulating economic activity in the country. In an exclusive conversation with “Huashang News”, President FPCCI Atif Ikram Sheikh delved into a wide range of pressing economic and business issues. From the evolving economic climate in Pakistan and the significant strides made in lowering interest rates and energy costs, to the promising future he envisions for the economy in 2025, President Sheikh provided valuable insights.

He emphasized the critical role of FPCCI in fostering trade and investment partnerships, particularly under the China-Pakistan Economic Corridor (CPEC), and highlighted the importance of Special Economic Zones (SEZs) as catalysts for industrial growth and foreign investment. Touching upon FPCCI’s efforts to facilitate Chinese businesses, he underlined the organization’s unwavering commitment to supporting international investors and bridging gaps between local and foreign enterprises.

President Sheikh also addressed the challenges posed by inflation and energy costs, offering practical policy recommendations to support Pakistan’s business community. He spoke passionately about the immense opportunities available for Chinese investors in Pakistan, encouraging them to leverage the improving law and order situation and the country’s strategic location. Additionally, he shed light on the key achievements of CPEC and the steps private sector businesses can take to align themselves with its transformative projects. Throughout the interview, his insights reflected a clear vision and strategic direction for driving economic growth, strengthening international trade ties, and creating a sustainable, business-friendly environment. With a deep understanding of Pakistan’s economic dynamics and a proactive approach to addressing challenges, President FPCCI painted a compelling picture of a resilient and thriving Pakistan, ready to embrace its economic potential. Following are the excerpts of his interview:

Q: How do you view Pakistan’s current economic climate, and what role does FPCCI play in addressing the country’s economic challenges?

Atif Ikram Sheikh: Pakistan's economic climate, though challenged in recent years, is now showing signs of improvement. The Federation of Pakistan Chambers of Commerce and Industry, as the apex body representing the business community, has been instrumental in driving positive changes and supporting the nation’s economic development.

One of our significant achievements has been in advocating for fiscal reforms. Previously, the interest rate was at a staggering 23%, which was detrimental to businesses and economic activity. Due to the concerted efforts and persistent advocacy by FPCCI, State Bank of Pakistan has reduced the interest rate to 13%. This development is a game-changer for businesses, especially small and medium enterprises, as it directly impacts borrowing costs and encourages investment.

In the energy sector, FPCCI has played a pivotal role. We advocated for negotiations with independent power producers (IPPs), resulting in 28 IPPs revising their rates downward. This initiative has not only alleviated some of the financial pressures on the energy sector but also set the stage for reducing electricity costs further in the coming days. Affordable energy is critical for industrial growth, export competitiveness, and overall economic sustainability.

I firmly believe that the economy is on a path of recovery, and FPCCI is at the forefront of this transformation. Our initiatives in fostering public-private partnerships, engaging with policymakers, and addressing the key concerns of the business community are all contributing to a brighter economic future for Pakistan. FPCCI’s commitment remains unwavering, and we will continue to work tirelessly for the betterment of the country’s economy."

Looking ahead, I am confident that 2025 will mark a turning point for Pakistan. It will be a landmark year for our economy, businesses, and industries. The policies and reforms we are championing today are designed to create a more conducive environment for economic growth, investment, and innovation in the coming years. FPCCI is working diligently to ensure that this potential is realized, bringing prosperity to the business community and the nation at large.

Pakistan’s economy is on the path to recovery, and FPCCI remains steadfast in its commitment to driving this transformation. Through our initiatives, partnerships, and advocacy, we are not just addressing the challenges of today but building a robust framework for a brighter, more prosperous future."

Q: CPEC has been termed a "game-changer" for Pakistan’s economy. In your view, what are the key achievements of CPEC so far, and how can private sector businesses better align themselves with its projects?

Atif Ikram Sheikh: CPEC has truly been a transformative initiative for Pakistan, living up to its reputation as a 'game-changer.' It has not only strengthened bilateral ties between Pakistan and China but has also paved the way for long-term economic stability and growth.

The key achievements of CPEC so far are numerous and impactful. Firstly, it has significantly improved Pakistan’s infrastructure. Projects such as the Gwadar Port, highways, and rail networks have enhanced connectivity within Pakistan and with regional markets, making trade and logistics more efficient.

Secondly, CPEC has addressed Pakistan's energy crisis, which has historically hindered economic growth. Power projects under CPEC have added thousands of megawatts to the national grid, reducing energy shortages and supporting industrial activity. Thirdly, CPEC has fostered industrial development through SEZs. These zones offer a platform for local and foreign businesses to operate in a highly conducive environment, equipped with modern infrastructure and incentives. Moreover, CPEC has created job opportunities and stimulated ancillary industries, uplifting local economies. It has also promoted regional cooperation by positioning Pakistan as a strategic hub for trade routes connecting South Asia, Central Asia, and the Middle East.

To better align with CPEC projects, private sector businesses must adopt a proactive approach. They should leverage the opportunities presented by SEZs and explore partnerships with Chinese counterparts to access technology transfer, investment, and expertise. Additionally, businesses can focus on sectors like energy, logistics, agriculture, and manufacturing, which are integral to CPEC’s framework. The private sector should also collaborate with FPCCI and other trade bodies to stay informed about upcoming opportunities and policy developments. Engaging in joint ventures, participating in trade delegations, and conducting sector-specific research can help businesses align their strategies with CPEC’s goals.

CPEC is more than just a series of projects; it represents a shared vision for economic prosperity. The private sector has a vital role to play in realizing this vision, and with active participation and strategic alignment, the benefits of CPEC can be maximized for Pakistan’s economic growth and development."

Q: What role FPCCI is playing in facilitating trade and joint ventures between Pakistani and Chinese businesses under CPEC?

Atif Ikram Sheikh: The CPEC is a transformative initiative, a "game-changer" for not only Pakistan’s economy but for the whole region, and FPCCI is deeply committed to maximizing its potential for fostering trade, investment, and joint ventures between Pakistani and Chinese businesses.

As the leading body representing Pakistan's business community, FPCCI stands ready to facilitate and support our Chinese counterparts in every possible way. Whether it involves providing guidance, offering facilitation services, or building connections, we are fully equipped and dedicated to ensuring smooth and successful collaborations. Any Chinese company looking to establish a presence or invest in Pakistan can rely on FPCCI for comprehensive support at every stage of their venture.

To further enhance these efforts, FPCCI has established a robust Research and Development (R&D) program. Through this initiative, we conduct detailed sectoral studies for various industries, offering valuable insights into market dynamics, opportunities, and challenges. These studies serve as a critical resource for incoming businesses, equipping them with the knowledge needed to make informed decisions and align their strategies with the local economic landscape.

Our goal is to create a conducive environment for Chinese investments and partnerships, fostering mutual growth and prosperity. CPEC represents a shared vision of development, and FPCCI is playing an integral role in transforming this vision into reality by bridging businesses, facilitating opportunities, and strengthening the economic ties between our two nations."

Q: How do you view the role of Special Economic Zones under CPEC? What are FPCCI’s plans to make them more accessible and attractive to local businesses?

Atif Ikram Sheikh:  Special Economic Zones under CPEC are critical for Pakistan’s industrial growth and economic development. They provide a platform for businesses to thrive with benefits like tax incentives, improved infrastructure, and streamlined operations. Many industries are already investing in these zones, recognizing their potential to drive competitiveness and economic progress.

FPCCI is actively playing its part in ensuring the success of SEZs. We are focused on advocating for policies that make these zones more accessible and attractive to local businesses while addressing challenges that arise. Although there are concerns stemming from external factors, such as IMF policies that may not fully support the promotion of SEZs, FPCCI remains committed to fostering their growth and working towards solutions that maximize their impact.

Our goal is to collaborate with stakeholders, both public and private, to ensure SEZs achieve their intended purpose of industrialization, investment attraction, and sustainable economic development in Pakistan."

Q: What message would you like to convey to Chinese investors, policymakers, and the business community regarding opportunities in Pakistan?

Atif Ikram Sheikh: I would like to convey a strong and encouraging message to our esteemed Chinese investors, policymakers, and the business community: Pakistan is brimming with opportunities, and now is the time to seize them.

FPCCI and I are deeply committed to providing comprehensive support, guidance, and facilitation to Chinese investors at every step of their journey in Pakistan. Whether it's navigating regulatory frameworks, identifying viable sectors, or forging local partnerships, we stand ready to assist.

The law and order situation in Pakistan has significantly improved, creating a stable and secure environment for business operations. This progress, combined with the government’s pro-business policies, makes Pakistan an attractive destination for foreign investment.

There are vast opportunities across multiple sectors, including energy, infrastructure, agriculture, textiles, and technology. With the CPEC serving as a cornerstone of our bilateral economic relationship, Chinese businesses are uniquely positioned to benefit from initiatives like Special Economic Zones and infrastructure development projects.

Moreover, Pakistan’s strategic location offers access to a market of over 240 million people and serves as a gateway to the wider South Asian, Central Asian, and Middle Eastern regions. By investing in Pakistan, Chinese businesses not only tap into the local market but also gain a strategic hub for regional trade.

I urge Chinese businesses to capitalize on these opportunities, and I assure them that FPCCI will continue to work tirelessly to ensure a seamless and productive investment experience. Together, we can achieve mutual growth and strengthen the longstanding friendship and economic partnership between our two nations.

Q: Given the challenges of inflation and rising energy costs, what policy recommendations would you suggest to the government to support businesses in Pakistan?

Atif Ikram Sheikh: Inflation and rising energy costs are the most pressing challenges faced by businesses in Pakistan. However, we are witnessing positive developments that provide a foundation for optimism. Inflation is gradually coming down, and as I mentioned earlier, energy costs are also expected to decrease in the near future. These trends offer significant relief to businesses and create an environment more conducive to economic growth. That said, there is still room for improvement, and I believe the government can adopt several critical policy measures to further support businesses and ensure sustained economic stability.

Firstly, energy costs must be managed strategically. The government should prioritize measures to bring energy prices into a more competitive range, as affordable energy is the backbone of industrial growth and export competitiveness. While the revision of rates by 28 IPPs is a commendable step, it is imperative to ensure these reductions are effectively passed on to businesses and consumers. Additionally, investing in alternative and renewable energy sources, such as solar and wind, can provide long-term solutions to stabilize energy costs and reduce dependence on imported fuels.

Secondly, the interest rate, or market rate, must be brought into the single-digit range. High borrowing costs are a significant deterrent for businesses, particularly small and medium enterprises, which rely heavily on credit for their operations and expansion. A lower interest rate would stimulate investment, enhance liquidity, and create job opportunities, ultimately driving economic growth.

Thirdly, inflation control must remain a key focus. While the downward trend is encouraging, maintaining this trajectory requires targeted fiscal and monetary policies. The government should ensure that supply chains for essential goods are streamlined to avoid artificial price hikes and provide subsidies or support mechanisms for key industries to maintain affordability without compromising production.

Finally, collaborative efforts between the public and private sectors are essential. FPCCI is always ready to work alongside the government to provide data-driven insights, policy recommendations, and real-time feedback from the business community. Through initiatives such as our R&D program, we can identify areas where targeted interventions can yield the most significant impact, ensuring that policy decisions are both effective and aligned with market realities. By addressing these key areas, I am confident that Pakistan can create a stable, business-friendly environment that not only mitigates current challenges but also paves the way for long-term economic growth and resilience."

 Tahir Murtaza