The industrialists have sharply reacted on increase of petroleum products prices and fear that prices of all the goods produced locally will go up sharply in near future. They feared that it would have very negative impact on the purchasing power of general public, sale of goods will decline due to high prices with ultimately lead to closure of more industrial units.
Frequent increase in gas, power tariffs, transport fares and oil prices have already accelerated capital flight and discouraged local and foreign direct investment. They said that law and order is already a serious problem and feared day-to-day increase in oil prices, gas, power tariffs may further create unrest among general public. They rejected the increase in POL prices terming it unjust at the time when other countries in the region are extending price relief to their people.
Chairman, Korangi Association of Trade and Industry (KATI) Razzak Hashim Paracha, while showing his utter surprise over the government's decision said that India has recently reduced petroleum prices by Rs 2 per litre while Pakistan is increasing POL prices unjustifiably. "If the other countries in the region are providing relief to their consumers by reducing POL prices why Pakistan government is making people's lives miserable", Paracha said.
He said that as compared to India Pakistan is producing 20 to 25 oil indigenously besides getting oil from Gulf states on subsidised rates while India does not have any of this advantage. He said that the pathetic attitude towards industry and export sector, the industry would resort to cut down expenses and it would result in massive unemployment in the country.
The President, Pakistan Businessmen and Intellectuals Forum (PBIF), Mian Zahid Husain while condemning the increase in POL prices, said that there was no reason for the government to resort such a cruel decision at this juncture when the people have almost buried under the skyrocketing prices of utilities and food items.
He said that is seems that the government has decided not to pay any heed to the hue and cry of the masses over frequent and unjustified increases in utilities' prices and keep on increasing financial burdens on them without realising that there is an end to it. Chairman F B Area Association of Trade and Industry Shahid Ismail said that a large numbers of small and medium sized units were closed in the last six months as they could not compete owing to surging cost of production.
He feared that more units would close down after recent power and gas tariff hike. He said the association had no plan to call a strike but a joint strategy will be adopted to take up the anti-industry decisions with the government.
He said that increase in petroleum products will not only increase SPI and poverty but the outcome for trade and industry will also be negative and direct impact causing hurdles in pace of industrial and commercial activities. He said that developed world providing unexpected and unconditional relief package to trade and industry to accelerate the pace of industrial activates but in Pakistan trade and industries facing multiple hurdles such as power loadshedding, extortion and harassment of ransom and international recession.
He said that the government must take business community into confidence before taking important decisions. He demanded withdrawal of increase in oil prices. The patron-in-chief, Korangi Association of Trade and Industry (KATI) S M Muneer, Vice Chairmen, Amjadullah Khan and Najmul Arfeen in a statement said that the frequent increases in utilities prices by the present government has caused massive increase of 14 percent in the cost of production rendering the industry incompetent not only in the international market but also in the region.
An emergency meeting was held at North Karachi Association of Trade and Industry (NKATI) and discussed increase in gas, power tariffs prices. The participants condemned government decision to increase oil prices. They were of the view that people already have been facing problems in purchasing essential goods to feed their family. Increase in oil, gas and power tariff further aggravates their living condition.
They noted that government has already allowed 18 percent increase in gas and 12 percent increase in power tariffs from January 1, 2010 and feared these increases will have negative impact on law and order condition and feared that the situation may get out of government control. The meeting was attended by Chairman Sadiq Muhammad, Syed Usman Ali, Syed Iqtadar Ali, Faraz, Noor Muhammad Khan and others.