Senior vice president of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Syed Mazhar Ali Nasir has said that the exorbitant increase in petroleum products prices will further spur inflation, increase the cost of transportation of raw material and consumer goods and inflate cost of production which will be unaffordable in the present circumstance when exports of the country have been declined.
The FPCCI SVP urged the caretaker Prime Minister Nasirul Mulk to look into 8.9% price hike in prices of petroleum products. He said the government, through POL price hike would generate Rs 20 in the form of tax on sales of one litre of petrol and similarly Rs 30 is collected on the sale of one litre of diesel.
S Mazhar Nasir proposed that government devise some proper mechanism and concrete economic policies to increase revenues and stabilize economy on sound footings instead of taking frequently the short-term decisions on ad hoc basis by increasing the prices blindly.
"Instead of using POL prices as a tool to generate revenue, government should curtail its unnecessary expenses and take austerity measures and enhance the tax net," he urged, alerting that the increase in POL prices would have multiplying effect on trade and industry and economic activities which are already confronted with many challenges.
He said the high price of fuel in the country would further encourage its smuggling as around 15%-20% petrol consumed in Pakistan is smuggled from neighboring countries thus causing not only loss to the government exchequer but also to the motorists using adulterated fuel.
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