The huge 20 percent increase in gas prices planned by the government is likely to cast devastating repercussions on the national economy and oust the export-oriented industries from the international export market. The Lahore Chamber of Commerce and Industry (LCCI) President Shahzad Ali Malik in a statement said the increase in gas tariff would further jack up inflation, which according to official figures at present is around 15-16 per cent.
"The textile is one of the most value-added and export-oriented sectors in Pakistan, which accounts for more than 60 percent of total exports of the country. He said that even the slightest raise in the cost of production, at this critical juncture, would, therefore, spell doom and oust Pakistani merchandise from the international export market, which would deprive the exchequer of much-needed valuable foreign exchange to the tune of billions of dollars.
The LCCI chief argued that the contention, which has been portrayed by gas companies time and again that their prices are cheaper than several other countries is illogical because the prices quoted by them are not co-related with the cost of living index and hence do not depict the true picture.