Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has demanded immediate withdrawal of increase in the prices of fuel, gas and electricity.
Voicing severe concerns after the prime minister’s recent approval on price hike, FPCCI termed it detrimental, not only for the export-oriented sector but other sectors as well.
FPCCI expressed its disapproval on the issue, pointing out that this decision contradicts with the prime minister’s vision of improving on ease of doing business to promote industrialization within the country. Instead, the price hike is likely to have a negative impact on the overall economy, as well as the local consumers of gas.
According to Syed Mazhar Nasir, senior Vice President FPCCI, “the 2% hike in per unit price of electricity and rise in gas and petroleum would increase the production cost and as a result, Pakistani products would not be able to compete in the international market.”
Adding to this, he pointed out that the export oriented industries would be the main victims of this decision, and given the fact that Pakistani export products are already uncompetitive in the international markets due to high cost of business, a further increase in production cost would lead to a collapse soon.
He said that due to this decision, the export-oriented businesses would not be able to improve upon the 14% increase limit.
FPCCI expressed further concerns on how this price hike is likely to effect the FDI, saying that “repeated increase in petroleum prices in recent past has badly eroded Pakistan’s competitiveness due to which the country is losing attraction for investment, and this situation would further destabilize the economy.”
Mazhar Nasir said that increase in prices has come as a big shock for poor people, industrialists and traders and would have a negative impact of the inflation stricken masses and fragile economy.
