LAHORE: The Lahore Chamber of Commerce & Industry (LCCI) has called for measures to safeguard Pakistan’s economy from the severe impacts of rising global oil prices exacerbated by the ongoing Iran-Israel conflict.
In a joint statement, the LCCI President Mian Abuzar Shad, Senior Vice President Engineer Khalid Usman and Vice President Shahid Nazir Chaudhry said that surging oil prices could trigger an economic crisis, worsening inflation, raising production costs and straining the country’s balance of payments.
The LCCI outlined specific strategies and recommendations to help mitigate the effects of rising oil prices and stabilize the economy in these challenging times.
They expressed concern over the potential economic impact and provided concrete suggestions to address the situation. The current global crisis demands swift and strategic action from the government. The rise in oil prices will directly affect every sector of the economy, from transport to manufacturing. They urge the government to implement comprehensive measures to protect businesses and consumers alike.
Mian Abuzar Shad, Engineer Khalid Usman and Shahid Nazir Chaudhry said that the government should immediately establish or enhance strategic oil reserves to buffer against global price spikes and supply disruptions. By stockpiling oil during periods of lower prices, Pakistan can maintain a steady supply and mitigate the effects of sudden price hikes in the international market.
They added that the government must provide targeted subsidies for essential sectors such as industry, agriculture manufacturing and transportation, that are most affected by rising fuel costs. These subsidies will help alleviate the burden on industries and prevent job losses, ensuring continued production and economic activity.
The LCCI office-bearers said that to reduce dependency on oil imports, Pakistan should accelerate the shift towards alternative and renewable energy sources such as solar, wind and hydropower. The LCCI recommends fast-tracking renewable energy projects and providing incentives for businesses to adopt greener energy solutions. This is an opportunity to make our energy sector more resilient by focusing on domestic energy production.
They said that the government should enhance efforts to explore and develop indigenous oil and gas resources. Investing in local energy exploration will reduce reliance on volatile international markets and provide long-term energy security.
Copyright Business Recorder, 2024