KARACHI, March 17: Business and industry leaders while slamming the second increase in the petroleum prices feel that this will not only increase the cost of production further, but will also hit the already fragile exports by rendering our products uncompetitive on the world markets.
Korangi Association of Trade and Industry chairman Shaikh Fazle Jalil termed this hike a ‘big shock’ for general consumer and trade and industry as it would fuel the food inflation and push up the cost of inputs.
“This move by the caretaker government will put the incoming government in real test,” he added.
He said that the trade and industry had been finding it difficult to absorb the impact of first increase in POL rates since March 1 in addition to rising power and gas tariffs.
He claimed that many industrialists and traders had started selling their businesses or shifting them to Middle East especially in Dubai. “The capital flight will gain momentum,” he added.
“The caretakers should have absorbed the impact of rising world oil prices and let the incoming government to handle the price issue,” Jalil said.
Site Association of Industry chairman Nisar Sheikhani said the industries had already been trying to cope with the frequent long power outages and the two hikes in petroleum prices would severely hurt the exports.
He said the textile exports would suffer heavily. “The caretakers should have left the decision for second petroleum hike to the new government,” Sheikhani said.
North Karachi Association of Trade and Industry chairman Noor Ahmed said that it seemed that the caretaker government was determined to destroy the industrial base by taking such anti-trade and industry decisions.
He said that industrialists had already stopped investing and expanding their ongoing projects after frequent increase in cost of production. They would invest in property in Dubai instead of putting additional capital in the country, he added.
He said exporters were already facing tough competition from their Indian, Bangladeshi and Chinese rivals and the continued rising cost of production and doing business would render Pakistani products uncompetitive.
Federation of Pakistan Chambers of Commerce and Industry Vice-President Zubair Tufail said that the rising petroleum prices would further make the life of a common man miserable and urged the incoming government to take some corrective measures for provision of immediate relief to the general masses.
