The business community here has described the recent increase in oil prices and power tariff as disasters of industrial sector. Talking to Business Recorder, Chairman of Korangi Association of Trade and Industry (Kati), Fazal-e-Jalil said that increase in oil prices and power tariff would adversely hit the poor people and service personnel.
He said that recent increase in oil prices and power tariff would have multiple effect on prices of goods. Inflation and food inflation would go up; exports would suffer; and purchasing power would be hit adversely. He suggested that instead of increasing oil prices and power tariff it was more appropriate that the government should have reduced its own lavish expenses.
Site Association of Industry (SAI) Chairman Nisar Shakhani criticised the government for late taking decision to increase oil prices in the country. Oil prices have gone up in international market and Pakistan had no choice but to increase it, he added.
He said it was also surprising that the government was making all issues as political issue instead of deciding the matter on its merits. He said that cost of living has increased in all countries due to international high prices of oil. In Pakistan, it is no exception. Giving example of India, he said that in India provincial governments provide transport subsidy to export goods, and suggested that Pakistan should also evolve such strategy.
Federal B Area Association of Trade and Industry (FBAATI) Chairman, Idrees Gigi said that increase in oil prices and power tariff have jolted the industrial sector.
He said that oil and power tariff has been increased at a time when Pakistan is getting fewer exports orders due to prevailing uncertain conditions. Now after election the things have started improving but this increase would hit cost of production and ultimately hit exports. Pakistan may face difficulties in procuring new orders, he added
North Karachi Association of Trade and Industry (NKTI) Patron-in-Chief Moiz Khan termed increase in oil and power tariff as disasters for industrial sector. He said that increase in oil and power rates would have multiple effects on cost of production.
He said that the transporters have already demanded increase in transport charges; labour also demand higher wages; prices of food items will go up; mankind life more miserable to poor people, and purchasing power would be eroded.