The business community has termed recent increase in oil prices as anti-business and anti-industries and feared that it would generate new waves of price hike in the country. The raise in the petroleum prices has come as a shocking Ramazan and Eid gift from the elected government to the poor masses of this country. The poor and the salaried class are facing hardships due to the rising cost of utilities and direct and indirect taxes, which have left substantially less to pay for eatables, education, healthcare, clothing, etc.
Amid rising cost of living and increasing unemployment those who were unable to bear the burden being sucked into criminal activities. Criticising the government's decision to increase the prices of POL they termed it as bad news for the country's economy; an economy which is already facing a number of challenges. They strongly condemned the hike in POL products as well and said that this will certainly stoke a storm of inflation.
Moreover, after the announcement of hike in POL prices the prices of all the basic necessities have been increased substantially. Latest hike in the POL prices will bring another wave of inflation hitting hard the common men who are already leading a miserable life. Transporters will increase the bus and wagon fares. The cost of production of every commodity will increase resulting in price hike across the board.
President, Karachi Chamber of Commerce and Industry (KCCI), Anjum Nisar said in a competitive economy, the cost of production play's an important role. The President condemning the increase in petroleum prices said the decision would deal another blow to the country's fragile commerce and trade. He said that the people already facing hardship due to increasing prices of essential items and in particular food products.
He termed the increase as unjustified and added that oil prices were increased when there is almost no change in oil prices in the international market. He said that cost of doing business is already higher in Pakistan. Recent increase in oil prices will mitigate impact on recently decrease markup rates and reduced inflation.
Former Chairman, North Karachi Association of Trade and Industry (NKATI), Noor Ahmed Khan anticipated that this decision would compel transporters to increase transportation charges, industrialists to increase prices and poor will have no option but to sustain the impact. He was of the view that prices of all locally produced goods will register increase by 10 to 15 percent. He said that industries are already closing down and this increase will further aggravate the situation.
Chairman, Federal B Area Association of Trade and Industry (FBAATI), Idrees Gigi said this decision would further shatter the already crippled economy. He said this exorbitant rise in POL prices would pour cold water on the government's hopes of achieving export target. The cost of production will enhance and this would make Pakistani goods more expensive in the local as well as in the international markets.
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