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Industrialists and traders have reacted sharply to the increase in oil prices saying it will put additional burden on poverty-stricken people of the country. They demanded of the government to withdraw this anti-people decision without delay. They said the cost of manufacturing will rise considerably owing to multiple impacts of oil price increase.
They said it would have a detrimental impact on industrial sector also. They said it seems that the government is not visualising the impact of increase in oil price, gas and power tariff on the cost of manufacturing. The frequent increase in oil prices is scaling down the purchasing power of general pubic especially the salaried class.
They said poor labourers are already suffering due to high prices and it has become impossible for them to carry on in minimum wage of Rs6000 per month.
They said the government has no gas and electricity to run industrial units.
The increase in petroleum prices tantamount to taxing people and announcing a mini budget.
Chairman, Site Association of Industry (SAI), Mohammad Irfan Moton was of the view that prices of all locally manufactured goods will go up.
He said fresh prices of POL would bring a new wave of price hike because transport fare and freight would definitely move up. KESC has also increased the fuel adjustment charges, which would cripple the business activities in the country.
He said this increase will have deteriorating impact on manufacturing sector.
Chairman Federal B Area Association of Trade and Industry (FBAATI), Masroor Alvi said massive increase in POL prices would add to the woes of the public and labour as it would result in skyrocketing prices of all essentials and cost of living besides dealing a big blow to the economy.
He said salaries of public and private sector employees have not been increased in proportion to the increase in cost of living, which will have serious impact on their living.
He said the industry was already facing enormous problems due to non-availability of gas, electricity, law and order. Chairman North Karachi Association of Trade and Industry (NKATI), Abdul Rashid Fodderwala said prices of all goods produced in Pakistan will go up by 2 to 2.5 percent as a result of increase in oil prices.
He said the industry is already facing gas and electricity load shedding. The industrial sector would totally collapse after this unbearable increase.
He said the industry is using oil to run factories due to constant load shedding by KESC. The increase in cost of oil products would further increase the cost of production and our products would become un-competitive in international market.
He said that there is no long-term policy in Pakistan whereas Bangladesh which doesn't produce cotton is giving tough time to Pakistan on the international market due to its firm policies.

Copyright Business Recorder, 2012

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