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The Lahore Chamber of Commerce and Industry (LCCI) has expressed dismay over hike in POL prices and expressed apprehensions over ill impact on the national economy. "The Lahore Chamber rejects POL price hike and logic for this initiative given by the Ministry of Finance" and questioned why the comparison for just POL prices with India, Bangladesh and Turkey is made.
LCCI President Malik Tahir Javaid in a statement on Monday pointed out that the exports of India, Bangladesh and Turkey have crossed $268.6 billion, $34.14 billion and $150.2 billion respectively while Pakistan is running with just around $21 billion. Industries in those countries are playing freely and enjoying the status of state-partner while Pakistani industrial sector is struggling for its survival", he said.
He said that logic has been given for POL price hike that oil prices in international market are soaring. It is true that oil prices in the international market are rising but it would be better if government cuts duties, taxes levied on petroleum products and reduces huge non-development expenditures, he added.
The Lahore Chamber has already asked the government to avoid increasing POL prices as current economical condition does not allow such measures. The industrial sector would be immediate victim of the hike as it is one of the major raw materials of the industries, he said. The industrial production and movement of raw materials and trading goods would be more costly and reduce the competitiveness of Pakistani goods in the international market and put the government's initiatives in reverse for boosting exports, he maintained.
Malik Tahir Javaid said that increase in petroleum price would also add to the complexities of the agriculture sector which is already in a bad state-of-affairs because of water scarcity and various. The increase in petroleum prices would increase the input cost of agriculture production as high speed diesel is being used in tractors, tube-wells, harvesters, thrashers and other agriculture machinery, he said.
The cost of thermal generation by private sector will also go up. The government is producing huge amount of electricity through thermal means and after increase in petroleum prices, prices of electricity would touch new highs, he said and urged the government to withdraw recent huge hike in POL prices to avert huge economic losses and to win the trust of trade, industry and masses otherwise anti government sentiments would rise.
Meanwhile, the Progress Group of the Lahore Chamber also expressed serious apprehension on increase in oil prices notified by the Oil and Gas Regulatory Authority (OGRA) saying it will negatively affect the businessmen and common people alike. The government while increasing oil prices has forgotten the poor as the hike may result in increasing prices of different products.
The Group's President Khalid Usman said that it would also hurt the manufacturing sector as their input cost would increase due to high transportation charges thus making them more in-competitive in the international market.
"Our economy is worsening day by day because of continuous increase in petroleum, gas and electricity prices. The country's industrial sector is not performing well and under such circumstances it is bound to get another blow," he added. He criticised the government for "inflicting this heavy blow on the common man at a time when the country was facing a very high inflation rate, especially in food items."
He urged the government to immediately withdraw this decision which might be a result of decrease in the value of Pak rupee against dollar which also had a negative impact on the import sector of the country. Chairman, Lahore Township Industries Association Khaldoon Javed Malik also expressed his concern over the government decision to increase the petroleum prices and said that it would add to the transportation cost of the industry besides increasing inflation in the country.

Copyright Business Recorder, 2018

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