RECORDER REPORT

KARACHI: The business community has expressed serious concerns over the continued increase in petroleum prices in the domestic market, terming it a major threat to the industrial sector and overall economic competitiveness.

Senior Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Saquib Fayyaz Magoon said that the business community was expecting relief in domestic fuel prices, which has not materialised.

He said the continuous rise in energy and petroleum prices has pushed the cost of production to a “dangerous level,” severely affecting industrial output, exports, and business sustainability. He added that frequent increases in taxation on petroleum products by the government have further contributed to record-high fuel prices in the country.

Magoon stressed that industries are already under pressure due to inflation, high utility costs, and weak demand, and further increases in fuel prices are worsening the situation for manufacturers and exporters alike.

He urged the federal government to immediately revisit its pricing and taxation policy on petroleum products and provide relief to the industrial sector in order to stabilize production costs and support economic growth.

However, FB Area Association of Trade and Industry (FBATI) President Sheikh Muhammad Tahseen said that the record increase in the prices of petroleum products by the government has broken the back of the industries. He said that in the context of rising global prices, petroleum prices in Sri Lanka, Bangladesh, Vietnam and other Asian countries have increased slightly compared to Pakistan.

He said that the government’s petroleum levy agreement with the IMF has devastated local industries, which has put the survival of industries at risk. He said that the government is collecting about Rs 160 as petroleum levy, and the petroleum levy has been increased by another Rs 29.92.

He said that with the continued increase in diesel price, transport fares have increased by 40 percent, while the inflation rate has reached a 22-month high level of 11 percent.

Sheikh Tahseen said that the recent increase in petroleum prices will take the inflation rate to new heights in the coming days.

He demanded that the government negotiate with the IMF in this regard because factories are moving towards closure and due to high production and transport costs, and export activities of Pakistani products have suffered a decline.