ISLAMABAD, July 13: Islamabad Chamber of Commerce and Industry (ICCI) has criticised the recent increase in electricity, gas and oil prices and has called for its immediate withdrawal to save business and industry from collapse.

ICCI President Mohammad Ijaz Abbasi, in a statement, said on Sunday phasing out of subsidies on petroleum products, power tariff and other items would have negative impact on business and industry and would further add to the rising inflation and cost of doing business in the country.

He said the input costs have already gone up due to phenomenal spike in oil prices, and phasing out of subsidies on energy prices would further raise production cost rending Pakistan’s products uncompetitive in the international market, businesses could be forced to close their operations and render thousands of workers jobless while the common man would also be hit hard.

Mr Abbasi said Pakistan was confronted with the challenges of poverty and unemployment and the government could overcome such challenges by attracting investment and promoting business but phasing out of subsidies would make things more difficult for investors and the industry.

Therefore, the government should reconsider its decision of increasing utility prices, he said.

He said the government should withdraw one per cent increase in general sales tax as it would directly affect the end users. He emphasised that GST on oil, electricity, gas and food items should be reduced to 10 per cent to provide relief to the common.