Pakistan industry leaders warned that the decision to increase the prices of petrol and diesel by PKR 17.50 and PKR 20 per litre, respectively, will trigger mass unemployment and lead to closure of 50% of industrial units, the Dawn said in a report..
The business leaders highlighted that trade and commerce is already bearing the brunt of the power hikes by PKR 10 per unit and the new hike announced by the caretaker government will further hurt the economy.
They said that existing inflationary pressures and ongoing cost of living and manufacturing crisis will further exacerbate due to these measures, the Dawn said.
Suleman Chawla, the acting president of Federation of Pakistan Chambers of Commerce and Industry (FPCCI), urged the government to not increase the key policy rate, petroleum prices and electricity tariffs and not manipulate the exchange rate to achieve economic stability.
He also said that he urged the previous coalition government to resolve issues related to handling of oil cargoes, adjustments in refining processes and transactional procedures in the import of Russian crude, the Dawn said in a report.
Karachi Chamber of Commerce and Industry (KCCI) President Mohammed Tariq Yousuf paints a more grim picture when he says that struggling industries will have to end operations due to these hikes.
“We fear that the rest of 50% industries will also shut down due to the exorbitant energy tariffs,” Yousuf was quoted as saying by the Dawn. He says that at least 50% of industrial units have already closed down operations and these hikes will also increase burden on consumers.
Korangi Association of Trade and Industry (KATI) President Faraz-ur-Rahman also told the newspaper that rising fuel prices will increase unemployment and hurt the weaker sections of the society.
Rahman says high diesel prices will lead to higher transportation costs for goods. This will also impact industries that depend on cargo shipping and freight services.
Pakistan Business Council (PBC) CEO Ehsan Malik says it is unrealistic to expect the interim government to resolve issues related to inflation, devaluation, letters-of-credit opening, utility tariffs which are all immediate challenges as Pakistan’s economic woes are due to fundamental flaws that have existed for years.