FAISALABAD, Sept 3: The recent increase in the petroleum products will inflict another blow to the national economy and trigger price hike.

Expressing his concern over the prices, Faisalabad Chamber of Commerce and Industry President Zahid Aslam said Pakistan was already passing through a critical situation as the economy was under pressure.

“The inflation has forced the government to withdraw various subsidies that have been hitting all sectors of economy particularly the industrial segment that is already operating at 30 per cent capacity.”

He said the situation would ultimately affect the government incomes and cause steep decline in foreign exchange proceeds.

“Energy crisis, the deteriorating law and order and high input cost along with currency depreciation have already hurt badly the industrialisation and economic growth in the country,” he said.

The FCCI president said the recent increase in petroleum prices would also increase transportation charges resulting in another wave of inflation with overall impact in direct proportion to cost increase for all other sectors – industry and commerce including prices of daily necessities and services.

He said the crisis-stricken industrialists would be forced to cut their operation rendering hundreds of thousands of workers jobless.

He said: “Consistency in inputs and utility cost is a key requirement in making long-term business and industrial expansion plans. Such a frequent increase in POL prices might shatter the confidence and leave a negative impression on local and foreign investors.”

He urged the government to immediately convene a meeting of all stakeholders to discuss and review the situation so that a viable solution could be evolved to absorb the increase in oil prices in the international market with its minimum effect on the local industry and commoners.