Unprecedented increase to fuel inflationary pressure, cost of living and doing business
Govt urged to withdraw its decision in the interest of business and economy
Staff Report
PESHAWAR: Sarhad Chamber of Commerce and Industry voiced concern over massive increase in prices of petroleum products and stated that it will fuel price-hike and cause further bringing stagnation and sluggishness in industrial and economic growth.
In a recent joint statement issued here on Monday, SCCI president Fazal Moqeem Khan, senior vice president Abdul Jalil Jan, vice president Shehryar Khan and members of the executive committee opined the government’s move further fuel the inflationary pressures resulting in further increase in cost of living and cost of doing business – which is already the highest in the entire region, essentially, make the Pakistani products less competitive in the global market.
Senior office bearers, particularly mentioned the government has already proposed an imposition of carbon levy on petrol, high-speed diesel, and furnace oil of Rs 2.5 per liter in the coming financial year, which would further increase to Rs 5 per liter in the next fiscal year.
According to them, the measure is expected to raise an estimated Rs48 billion in the upcoming fiscal year.
SCCI office bearers viewed that surge in petroleum prices would lead to a ripple effect on transportation and energy costs, ultimately affecting the end consumers.
With the country already grappling with inflation and devaluation for the past several years, the burden of higher fuel prices will further burden the population and businesses alike, they added.
Following the unprecedented surge in petroleum commodities, Moqeem Khan expressed fear that energy prices will also go further up, which would raise electricity tariff and directly hit the industries, business and push up cost of doing business and industrial production.
He was of the view that oil, gas and electricity are considered to be used as raw material for the industries, if their prices continue to escalate that would have resulted in fuel price-hike and hamper the efforts to control over the rising inflation in the country.
Similarly, he said the national economy, businesses and industries are hardly recovering from the prolonged recession, and such steps would jeopardize the government’s efforts of ‘ease cost of doing business’, industrial growth and control over the rising inflation in the country.
Moqeem Khan stated collaborative efforts between the government and private sector will be essential in mitigating the impact of rising fuel prices and fostering a conducive business environment for economic growth and prosperity.
The SCCI chief urged the government to withdraw its decision in the best interest of business, industries and economy so that businesses and industries will flourish that will create maximum employment opportunities for many people.
