Industrialists and traders alike have criticised repeated hike in petroleum prices and said that oil is the lifeline of transport and increase in its prices will raise the cost of doing business. Taking serious notice of the adverse impact of the decision on transport, cost of manufacturing of industry and common masses who are already burdened with the price hike of essential commodities, business leaders said it will increase inflation, which is already in double digit.
Criticising Oil and Gas Regulatory Authority (Ogra) for further burdening the transport, manufacturing sector with the hike in oil prices at a time of high inflation, they demanded that the increase in the prices of petrol, diesel, LPG and kerosene be immediately rolled back. They said that increase in oil prices will inflict this heavy blow on industrial sector at a time when the country was facing a very high inflation rate, especially in food items.
They said that the government has forgotten the poor and added that such an unprecedented hike will put an additional burden over the people who are already facing hardships due to sky rocketing prices of the essential commodities. They said in reality, present and past governments never bothered to work for the mitigation of sufferings of the people and ensure that they are in a position to manage two times meal for the family.
The further said that the industrial workers have already started demanding increase in salary and now after this hike in oil prices, they will further press the industrial units to increase salaries. They said that the PPP led federal government has bombed the country's transport, industries and general public by announcing the worst increase in POL prices that was unbearable and unacceptable for everyone.
Chairman Site Association of Industry (SAI), Wahab Lakhan said that there is no need to increase oil prices if government scarifies some taxes imposed on oil. He said that drastic increase in oil prices will have devastating impact on all sectors including transport, industry process, agriculture sector and imported and export of goods etc. He said that the government facing paucity of finance and it is not ready to give up any avenue from where if can generate finances. Lakhani admitted oil prices in world market have gone up.
Chairman Korangi Association of Trade and Industry (Kati), Syed Johar Ali Qandhari said that increase in oil prices will have severe impact on cost of doing business and cost of transportation. He said that the increase in the price of diesel, in particular will have a cascading effect on all-round prices as the transportation costs will raise sharply. He said that the industries depending on raw material from upcountry will face severe impact in cost of production owing increase in transportation cost. Likewise export-oriented industries will also face tough competition in already fragile international market.
He said that the industry has already been facing a number of challenges including poor law and order. Now the increase in petroleum prices would be the "last straw on the back of camel",
Chairman Federal B Area Association of Trade and Industry (FBAATI), Mohammad Irfan said that pressure has started build up on industrialist to increase salaries of their employees as living accost have gone up many foul due to day to today increase in oil price and gas and power tariffs. He said industries would pass on the impact of increase in their production cost to consumers. But many of them, he added, might not survive as the demand for their products in the domestic market would decline and exports would become unfeasible.
He emphasised the need that the government must start process of discussing issue with business community to sort out an amicable solution of the issue. Irfan said that the government is deciding important issues in isolation which generally backfire. Political parties have already started reacting on the oil price increase he added.
Citing example of last time increase in oil prices, he said on the pressure of general public and political parties, government had taken back some porting of oil price increase. This time it is happening again, he added. He also cited example of sales tax imposed at the rate of 17 percent and after hue and cry of business community it was taken back and now a new SRO has been issued imposing sale tax at 4 to 6 percent.
During last few months sale of goods remain stagnant which resulted to revenue losses. He was of the view that economic crises will not be overcome until and unless have a comprehensive policy is prepared in consultation with business community. Irfan said that the economic team of the government talks a lot about huge tax gap in Pakistan, but fails to take remedial measures in this regard.
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