The business community in Pakistan has welcomed the recent reduction in petroleum prices, expressing their appreciation for the positive impact expected to have on various sectors of the economy.
The United Business Group (UBG) of the Federation of Pakistan Chamber of Commerce and Industry (FPCCI) commended the government’s move to decrease fuel prices, highlighting its potential benefits for the economy and the public. The decision, according to UBG Chairman Shahzad Ali Malik, will have a positive impact on curbing inflation, reducing production costs, and providing a much-needed boost to the industrial sector.
In a press release, Malik expressed his support for the government’s decision to pass on the impact of petroleum prices to the people, in addition to maintaining the ban on luxury goods. He emphasized that the lowered petroleum prices would particularly benefit businesses heavily reliant on fuel, such as logistics and shipping companies. The reduced transportation costs are expected to improve profit margins for these businesses and potentially result in lower prices for goods and services, ultimately benefiting consumers.
READ MORE: FPCCI proposes simplification of taxation system in Budget 2023-2024
The UBG Chairman underlined the significant influence of petroleum prices on inflation, stating that when fuel prices decrease, it eases inflationary pressures as fuel costs constitute a major portion of production and transportation expenses. Consequently, lower petroleum prices are expected to contribute to lower overall inflation rates, thereby promoting price stability.
Furthermore, Malik highlighted the positive impact that the reduction in petroleum prices would have on the economy as a whole. By lowering costs for businesses and improving their profit margins, the decision is anticipated to stimulate economic growth and foster a more favorable business environment.
In light of these developments, Malik urged the government to consider further measures to bolster economic growth. He specifically called for a reduction in the super tax and the lowering of tax slabs for industries and the business community. These measures, according to Malik, would accelerate economic progress, rejuvenate commercial activities, and pave the way for the country to emerge from its current economic challenges.
The UBG’s support for the government’s decision reflects the optimism and confidence among business leaders regarding the potential positive impact on various sectors of the economy. As the reduced fuel prices take effect, businesses and consumers alike eagerly anticipate the benefits that will be derived from this welcome development.
READ MORE: Pakistan announces big relief in petroleum prices effective from May 16, 2023