Industrialists have strongly reacted to the increase in oil prices and demanded the government to immediately revert the increase. They fear that prices of all the goods produced locally will surge sharply in the near future. They further said it would put extra burden on pockets of poverty-stricken people of Pakistan.
They said that it would have a detrimental impact on industrial sector apart from adding to the miseries of consumers who are already overburdened. Commenting on POL products price increase, Chairman Site Association of Industry (SAI), Saleem Parekh said it seems that government is not prepared to visualise impart of increase in oil price, gas and power tariff on cost of manufacturing. He said that poor labourers are already suffering due to high prices and it has become impossible for them to carry on minimum wages of Rs 6,000.
He was of the opinion that prices of all locally manufactured goods will go up by 4 percent to 5 percent owing multiple impact of oil price increase. Chairman Federal B Area Association of Trade and Industry (FBAATI) Shahid Ismail feared that increase in oil prices will have a very negative impact on the purchasing power of general public, sale of goods will decline due to high prices and ultimately leading to closure of more industrial units.
He said that recent increase in petroleum products' prices is unethical as prices in international market are on the decline and government already is getting huge revenue for POL products sector. He said that fresh prices of POL would bring a new wave of price hike because transport fare, freight would increase and KESC would also add the fuel adjustment charges, which would cripple the business activities in the country.
He also criticised government's approach of taking unilateral decisions on matters, which directly affect businessmen, and stressed that the government should consult all stakeholders for developing consensus on key decisions. Utility tariffs in Pakistan were already one of the highest in the region, putting the country at a great disadvantage in exports against its regional competitors. President, Pakistan Businessmen and Intellectuals Forum (PBIF), Mian Zahid Husain said that the OGRA has allowed increase of Rs 6.10 per litter in petrol and Rs 2.97 per litre in diesel prices when the global oil prices are falling.
"The OGRA decision shows that the oil prices revision has no relation with the oil price fluctuation internationally but to mint some extra bucks to continue with the government's lavish spending at the cost of the poor man's hard earning", Mian Zahid said adding that massive increase in POL prices would add to the woes of the public as it would result into skyrocketing prices of all essentials and cost of living besides hampering the economy.
He said that POL is being imported through dollar purchased from the open market, which envisaged to further jack-up dollar price and all imports would get dearer. He said that frequent increase in gas, power tariffs, transport fares and oil prices have already accelerated capital flight and discouraged local and foreign direct investment.
He said that law and order is already a serious problem and feared day-to-day increase in oil prices, gas, power tariffs may further create unrest among general public. They rejected the increase in POL prices terming it unjust at the time when other countries in the region are extending price relief to their people.
He asked the high ups in Islamabad to reverse this decision which is clearly meant to sabotage the present government's claim to be a people's government. He further criticised the role of State Bank for not lowering the interest rate as maintaining it at 12.5 percent which becomes 15 percent ultimately with adding the banking spread of 2.5 per cent. He said that despite every appeal and request by the trade and industry to reduce bank interest has remained unheard by SBP governor ignoring the fact that his rigid stance is severely damaging industrial growth.
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