Karachi, April 3, 2026 – Pakistan’s leading business bodies have strongly condemned the unprecedented surge in petroleum prices, warning that the move could trigger economic paralysis, widespread industrial shutdowns, and a fresh wave of inflation across the country.
Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce & Industry, expressed deep concern over the government’s decision, calling it an existential threat to the economy. He urged authorities to immediately suspend the Petroleum Development Levy (PDL) on a temporary basis to provide relief to industries.
He noted that petrol prices have surged by Rs137.23 to an all-time high of Rs458.40 per litre, while high-speed diesel (HSD) jumped by Rs184.49 to Rs520.35 per litre — increases of 42.7% and 55%, respectively. According to him, the cumulative rise in fuel prices during March and early April has reached nearly 77%, severely damaging business confidence.
“The cost of doing business has escalated beyond control, risking de-industrialization, supply chain disruptions, and hyperinflation,” Sheikh warned, adding that export-oriented sectors may lose global competitiveness as international buyers shift to regional markets.
Industry, Agriculture, SMEs Under Severe Pressure
Saquib Fayyaz Magoon, Senior Vice President FPCCI, highlighted the cascading impact of the fuel price hike, stating that industries will face skyrocketing transportation and production costs. He warned that factories may be forced to shut down or reduce operations.
He added that the agriculture sector is equally vulnerable, as rising diesel prices will make operating tractors, tube wells, and harvesters financially unviable, posing risks to food security.
Small and medium enterprises (SMEs), often considered the backbone of the economy, are expected to suffer the most due to limited financial buffers, potentially leading to liquidity crises and business closures.
SITE, KATI Leaders Warn of Economic Fallout
Abdul Rehman Fudda, President of the SITE Association of Industry, described the hike as having a “360-degree impact” on the economy. He argued that the increase was largely driven by government levies rather than global oil prices.
Fudda revealed that the withdrawal of the Price Differential Claim (PDC) subsidy and imposition of additional levies have added over Rs150 per litre burden on consumers. He also pointed out that the ex-refinery price had actually declined, questioning the rationale behind the massive increase.
He warned that the decision would hurt exports, reduce foreign exchange earnings, and increase unemployment, adding that the common man would struggle to cope with rising living costs.
Meanwhile, Muhammad Ikram Rajput, President of the Korangi Association of Trade and Industry, termed the hike an “economic shock” that could push Pakistan toward financial instability.
Rajput cautioned that soaring fuel prices would ignite inflation, weaken purchasing power, and potentially lead to industrial closures and capital flight. He also warned of rising unemployment and social distress if the situation persists.
Call for Urgent Government Action
Business leaders across organizations have demanded immediate dialogue with the government, particularly the Ministry of Finance and Ministry of Petroleum, to review the decision and implement corrective measures.
They emphasized that without urgent intervention, Pakistan could face severe socio-economic instability, mass layoffs, and a collapse in industrial activity.