Rising cost of doing business: business leaders urge government to offset inflationary pressures

Business community has urged the government to take appropriate measures to arrest falling rupee value against dollar, contain and curtail inflation, reduce load shedding and stabilise economic conditions. They warned of food riots if the government did not take effective measures on war footing to control rising cost of food items.
Taking to Business Recorder, Korangi Association of Trade and Industry (Kati) Chairman Shaikh Fazal-e-Jalil said that food inflation was alarmingly high, and added that there had been reports of food-related disturbances in small cities. He said the industrialists were facing problems in getting fresh export orders owing to rising cost of doing business.
Referring to production losses of around 30 percent due to loadshedding, he demanded of the government to take appropriate measures to reduce loadshedding in industrial areas. Fazal-e-Jalil suggested that the government should allow import of small generators to help industrialists to overcome power shortage.
Replying to a question, he said that there was no harm in shifting weekly holiday from Sunday to Friday. However, he strongly opposed suggestion of two holidays in a week. Expressing concern over the depreciating rupee, he said that it would ultimately hit exports hard.
Justifying his claim, Fazal-e-Jalil said that around 80 percent of goods, produced in the country, were based on imported raw material and rise in dollar value would also increase the cost of raw material. He also opposed proposal for further increase in oil prices, and said that further hike in oil prices would also increase prices of all essential goods.
Site Association of Industry (Sai) Chairman M. Nisar Shaikhani said that economic conditions were fast deteriorating, and added that the situation needed immediate attention of the government to resolve them.
He hinted at flight of capital had already started, and added that it had almost become impossible to carry on production activities in a situation in which cost of doing business was increased after every 15 days.
Shaikhani opposed the proposal for further increase in oil prices, and said that it would adversely affect the cost of production, increase prices of all the goods produced locally as well as goods would become out of reach of poor and the middle income group. He said the government must concentrate on economic issues.
Patron-in-chief of North Karachi Association of Trade and Industry (NKATI) Captain Moiz Khan said that industries in the country were going out of production due to continued increase in cost of doing business. Expressing concern over reports suggesting further increase in oil prices, gas and power tariffs, he said that the government must subsidise oil, gas and power to boost economic activities in the country. Otherwise Pakistan had no option but to become a trading nation instead of an industrial nation.
Recalling 100-day package of the present government, he said wheat flour prices increased to Rs 28 per kilogram, oil and CNG prices increased thrice, power tariff also increased. Giving example of India, he claimed that India had reduced oil prices twice.
Referring to recent increases in CNG rates, he claimed that the CNG prices had been increased without the approval of Oil and Gas Regulatory Authority (Ogra). He also opposed the Ogra plan of further increase in oil prices.