KARACHI: The Central Executive Committee of the Pakistan Business Forum (PBF) rejected the recent hike in petroleum prices on Tuesday by the government.
They said that the high inflation caused by surge in petroleum prices made it hard further for the common man to bear it and questioned where is the relief of the Russian oil which was projected by the petroleum minister before the media.
They said that the Prime Minister Shehbaz Sharif should immediately withdraw the price of petroleum products to save people of Pakistan from the sky-high inflation.
Talking to Business Recorder, PBF Central Vice President‘s Jahanara Wattoo and Chaudhry Ahmad Jawad said price hike not only affected the commoners but also the business community and also said the decision would prove detrimental to the industries due to high cost of doing business and will also open the floodgates of inflation.
Similarly the electricity bills costlier and unaffordable for the consumers; now the unexpected hike in oil prices would escalate prices of all household goods being widely used across Pakistan, they added.
Ahmad Jawad said that Pakistan’s industry had been harmed by the high cost of doing business, which discouraged investment in capacity and capability and called for easing the burden of heavy taxes on the power sector.
He said that the economy of Pakistan, particularly the SMEs are striving to deal with the economic crunch and need to get support. Instead of providing subsidies or waivers, it is unjust to overburden the industries with a hike in the cost of production. An increase in petroleum products costs will further weaken the economic environment which is already under threat on various fronts.
Jahanara Wattoo said that the oil rates have been on the declining trend in the international market now, but the government instead of passing on this benefit to the public especially after the arrival of Russian oil, had increased their rates again, which is very unfortunate.
If fuel would be heavily taxed, the entire economy would suffer unprecedentedly, he said, adding that petrol and HSD are two major products that generate most of the revenue for the government because of their massive and yet growing consumption in the country. The economy is already in a precarious situation, this constant back and forth will only increase volatility, when we ought to be heading for stability, she added.
She said that the cost of doing business and cost of production have shot up to the level of un-competitiveness. The cost of borrowing was huge and capital financing has become more expensive.
Chairman Balochistan Engr Daroo Khan Achakzai said Pakistan exports cannot compete with China, Bangladesh and India where power tariffs were 7-9 cents, as the country’s exports have been witnessing a major setback in present days due to the high cost of electricity, which has become a major stumbling block in industrial development and boosting exports.
He said that fuel and electricity are regarded as the lifeline of any economy and play a pivotal role in the socio-economic development of a country.
Chairperson Sindh Shabnam Zafar said that industries need low-cost energy to bring down their cost of production, keeping their goods competitive in the international market. She said that the government, in present circumstances, would have to reduce the price of electricity along with the cut in the prices of petroleum products to bring down the cost of doing business and to promote industrial activities.
PBF leaders said that business activities were already in decline and in this situation the government should take serious steps to cut the cost of doing business, as yesterday hike in oil rates would further enhance the cost of production, making transport more expensive and life of common man will be more miserable.
Copyright Business Recorder, 2023
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