Category: Trade & Industry

This section covers news on trade and industry. Pakistan Revenue is committed to providing the latest updates on business trends.

KATI sends 2nd batch of relief goods for flood victims

KARACHI: Korangi Association of Trade and Industry (KATI) has send second batch of relief goods for flood victims of Sindh and Balochsitan.

In a statement issued on Saturday, KATI President Salman Aslam said that nine trucks of relief goods are being sent to the victims of Sindh and Balochistan.

READ MORE: Suzuki donates 10 million yens for Pakistan flood victims

The relief items include flour, rice, pulses, oil, dry food items, mosquito nets, pillow, water cooler, slippers, soap, toffees and biscuits for children.

On this occasion, KITE Limited CEO Zubair Chhaya, Senior Vice President Maheen Salman, Vice President Farrukh Qandhari, Member Aid Committee Junaid Naqi, Sindh Council Member Moazzam Qureshi and others were present.

Salman Aslam said that earlier he had taken the first batch to Balochistan under his leadership, in which relief goods worth millions of rupees had been dispatched, and the second batch is carrying goods worth more than Rs10 million.

READ MORE: SBP bars banks from taking service charges on flood donations

Three trucks will be sent to Balochistan, remaining 6 trucks will be sent to Khairpur, Dadu, Sukkur and other areas of Sindh.

President KATI said that we are determined to deliver aid to more than 20,000 families by the end of this month, while the aid supplies for 7,000 families has been completed.

He said that the cooperation of Rangers is with us in this activity, and the relief goods dispatched within Sindh and Balochistan under the supervision of Rangers which will be distributed at the designated points of KATI.

READ MORE: Complaints against banks for refusing flood donations

Salman Aslam said that there was a meeting with Commissioner Karachi Iqbal Memon in which he told that there are more than 500 IDPs in Korangi, our effort is to take care of 16,000 IDPs came to Karachi so far.

He said that after the immediate aid, we are trying to take steps to bring their lives back to normal.

On this occasion, Zubair Chhaya, CEO of KITE Limited, said that I am grateful to the members of KATI, including Patron-in-Chief SM Muneer, President Salman Aslam, Commissioner Karachi Iqbal Memon, People’s Party Korangi President Moazzam Qureshi, who are taking timely action, established a 7-member relief committee and sent the first aid supplies from the business sector.

READ MORE: SBP issues IBAN list for donations to PM flood relief fund

He said that I appreciate KATI President Salman Aslam for coming to help the flood victims and taking part in the relief activities. He said that I appeal to the business community and all citizens to actively participate in the initiative taken by KATI and donate generously to help our brothers and sisters who have been badly affected by the floods.

September 3, 2022
Industry slams finance ministry for blocking letter of credit

KARACHI: The industry has strongly criticized the ministry of finance for directing banks not to open letters of credit for essential machinery, equipment and spare parts.

“Pakistan’s industrial sector is gradually heading towards doldrums because of the adamant attitude of Ministries of Finance and Commerce to block banks from opening Letters of Credit or remitting advance payments for imports of essential machinery, equipment and spare parts,” this was stated on Tuesday in a press statement by Ismail Suttar, President Employer’s Federation of Pakistan.

READ MORE: Clearance of banned cars, phones allowed on 100% surcharge

Ismail Suttar further said that such blanket refusal under HS 84 and 85, which are for imports of machinery, spare parts, electrical and electronic equipment, vehicle CBUs and CKDs, and other essential items, is detrimental to the functioning of any industry, especially when a particular item is not manufactured in Pakistan.

EFP, which is the apex body of industries, is daily receiving frantic messages from member companies who are unable to maintain their production or adhere to delivery schedules. Moreover, a decrease in production eventually increases the cost of the product.

READ MORE: Pakistan lifts ban on import of cars, phones, luxury items

EFP President added that the industrialists fully understand the compulsions under which this embargo has been instituted but the government has to be pragmatic in its policies and must take cognizance of the ground realities. He advised the Ministers of Finance and Commerce to take private sector into confidence regarding the time frame of this embargo.

READ MORE: 15% surcharge imposed for clearance of banned items

Ismail Suttar also said that EFP has information that over 6,000 applications are pending before the SBP and this figure is not only mind-boggling but also a manifestation of the economic crisis faced by the country. The policy of refusal is negatively impacting on exports as well as affecting industries that are playing a prominent role in import substitution.

He added that the recent catastrophic floods have further compounded the already dire straits through which the industries are facing. He said his message is quite clear. Save industries before they close down and retrench workers thus creating a major social crisis.

READ MORE: SBP assures allowing stuck up containers of banned import

August 30, 2022
Karachi Port mulls to determine demurrage charges

KARACHI: Syed Muhammad Tariq Huda, Chairman, Karachi Port Trust has said that the port is considering to establish a regulator body to determine demurrage charges at the port.

The formation of regulatory body will be announced soon, he said in his address at a meeting held at Korangi Association of Trade and Industry (KATI).

On this occasion, KATI Patron-in-Chief SM Muneer, President Salman Aslam, Senator Abdul Haseeb Khan, KITE CEO Zubair Chhaya, Senior Vice President Maheen Salman, Vice President Farrukh Qandhari, Standing Committee Chairman Faraz-ur-Rehman, Former Presidents, Farhan-ur-Rehman, Masood Naqi, Danish Khan, Manzar Alam, Farrukh Mazhar and others were also present.

READ MORE: KATI flays imposition of new taxes

Chairman KPT Tariq Huda further said that I am trying to reduce the demurrage charges but due to some unavoidable reasons this issue is delayed, in a few days I will invite all the business community to the KPT head office where it will be formally announced.

He said that due to the recent change in the import policy, all the containers were stopped at the port, which has now been allowed to leave, due to which the demurrage charges were incurred.

Tariq Huda said that since 2002 no charges have been increased by KPT. However, employee salaries and other administrative expenses increased.

This is the reason why now the operating profit and revenue are equal, in the past KPT’s profit was high, many development projects were completed by KPT’s expenses including KPT flyover, underpass and other projects.

However, due to a lack of budget, it is difficult to bear the expenses of development projects. Now is the time to take concrete steps to increase the income of KPT.

Chairman KPT said that we will start Pakistan’s single window operation which will provide facilities to importers and exporters. Tariq Huda said that we should use our marine resources.

In this regard, if the business community under the leadership of SM Muneer presents its suggestions, I will provide all possible support. He said that if the Pipri railway track is completed, 100 containers can be cleared from the port immediately.

Apart from this, the elimination of marine pollution also becomes our responsibility to take all possible measures. We are throwing 8000 tons of garbage in the sea every day which has increased the pollution. We must immediately step up efforts to boost infrastructure and commercial activities. KPT will soon launch an awareness campaign to prevent environmental pollution.

On this occasion, KATI Patron-in-Chief SM Muneer said that corruption is spreading rapidly in the country. The country is currently going through an economic crisis, 90% of the industry has closed in Faisalabad, in such a situation we have to improve the economy.

He said that floods have created havoc in the country at this time, in such a situation negative campaigns against Pakistan Army on social media are condemnable. SM Muneer said that the Army Chief keeps a close eye on the economy. The most corrupt officer in the country is appointed as Water Board Chairman.

Despite the filling of dams across the country, the water board continues to cut off water. Chief Patron KATI said that fisheries have an export value of 450 million rupees, but the road and infrastructure there are in a state of disrepair. In connection with KATI’s initiative to help the flood victims, I salute Salman Aslam who took immediate relief measures.

President Salman Aslam said that KATI is the first organization that took practical steps to help the flood victims. I have taken the first aid consignment of 5 trucks under my leadership, and I will prepare the second consignment soon.

He said that KATI also announced 50 lakh rupees for the relief of flood victims. President KATI said that the local industry is facing difficulties due to the global crisis. Severe inflation has broken the backbone of the common man.

The cost of production is threatening to bankrupt industries, while port demurrage charges and other payments are adding to the cost of doing business which manufacturers cannot afford.

Senator Abdul Haseeb Khan said that Tariq Huda is an experienced person, and it is hoped that he will solve the problems of the industrialists by taking a personal interest.

He said that we import raw materials and export them later, if time is saved, it can be done better. Exporters have been hit hard by the additional costs of demurrage and detention charges.

Zubair Chhaya, CEO of KITE Limited, said that KPT’s performance is continuously improving. The infrastructure we go through is appalling. There are no corridors to go from the industrial area to the port while Korangi, SITE, Federal B Area, Landhi, and North Karachi industrial areas are the backbone of the country but they are being crippled by destroying the infrastructure.

KPT should start a ferry service for citizens of Karachi to increase revenue.

Chairman of the Standing Committee Faraz-ur-Rehman said that steps should be taken to improve freight charges, and a separate authority should be formed for KPT on the pattern of the Drug Regulatory Authority to decide the issues of demurrages and detention.

He said that operating companies are collecting demurrage charges arbitrarily due to which importers and exporters are facing difficulties.

August 29, 2022
NKATI appeals release of stuck up textile machinery

KARACHI: North Karachi Association of Trade and Industry (NKATI) on Monday appealed the government for allowing immediate release of textile machinery that were stuck up due to import ban.

NKATI President Faisal Moiz Khan in a statement expressed deep concern over the non-release of containers of the textile machinery, parts at the ports due to government ban and subjecting the State Bank of Pakistan (SBP) to the permission of the federal government. As a result, the containers had been stuck up at Karachi Port.

READ MORE: NKATI asks SBP to stop free-fall in rupee value against dollar

In an appeal, NKATI president Faisal Moiz Khan informed to Prime Minister Shahbaz Sharif and Finance Minister Miftah Ismail to issue orders to release the containers containing textile machinery, parts stuck at the ports, otherwise the production activities of the textile industry will be disrupted and as a result the country will lose the export markets.

READ MORE: NKATI launches industrial area beautification

“The containers containing state-of-the-art textile machinery and parts under HS code 8452-2900 & 8447-900 are not being released at the ports of Karachi. The State Bank has made it subject to the permission of the federal government to release the containers stuck at the ports due to which import containers worth billions of rupees are awaiting release,” he pointed out.

READ MORE: NKATI urges PM Imran to reduce petroleum prices

Faisal Moiz Khan appealed to Prime Minister Shahbaz Sharif and Finance Minister Miftah Ismail to take notice of the situation and issue directives to the relevant authorities including the State Bank of Pakistan to immediately release the containers containing textile machinery and parts so that the production activities can be continued without interruption and fulfilment of export orders is possible on time.

READ MORE: Pakistan raises petrol price to record high at Rs160/liter

August 29, 2022
Exorbitant electricity tariff hike threatens industry survival: KCCI

Karachi Chamber of Commerce and Industry (KCCI) on Monday said that exorbitant hike in electricity tariff has threatened the survival of industries and businesses.

The Leadership of Businessmen Group (BMG) and Karachi Chamber of Commerce of Industry (KCCI), while totally rejecting the unprecedented 80 percent hike in electricity tariff, stated that this unbearable upsurge in electricity tariff has created a miserable situation not only for the public but also for the business and industrial community wherein many businesses and industrial units will close down on their own as it was impossible to absorb such an extraordinary raise in electricity tariffs.

READ MORE: Karachi Chamber stresses need to rationalize power tariff

Addressing a press conference here on Monday, Chairman BMG Zubair Motiwala and President KCCI Muhammad Idrees demanded that keeping in view the gravity of situation and likely repercussions on the already ailing economy, the government must immediately withdraw hike in electricity tariff, Fuel Adjustment Charges (FAC) and reintroduction/ increase in Fixed Charges so that the industries could survive in an extremely competitive environment while the hardships being faced by common man could also be reduced in the ongoing era of inflation.

General Secretary BMG AQ Khalil, Senior Vice President Abdul Rehman Naqi, Former President Younus Muhammad Bashir, prominent members of the Business Community, representatives of Industrial Town Associations and sector-specific trade associations were also present at the press conference.

Chairman BMG stated that it was a matter of grave concerns that the base tariff has been raised by Rs9.8972 per unit, which has jacked up per unit cost from Rs19 to around Rs30 per unit, indicating an unprecedented hike of 50 percent. “This is not the end of the story as this increased electricity base tariff of Rs30 per unit will obviously be subjected to 17 percent Sales Tax, Excise Duty and Income Tax as well and when all these components are combined, an unbearable minimum impact in between 65 percent to 80 percent, would appear in the electricity bills”, he noted, adding that if electricity tariffs continue to go up at same pace, the per unit tariff may reach somewhere in between Rs55 to Rs65 in the next couple of months.

READ MORE: Political parties responsible for Pakistan economic crisis: KCCI

Touching upon another important aspect which has raised the cost of doing business for industries, he informed that variant tariffs have once again been restored for the industries under the policy of Peak and Off-Peak Hours which was suspended in the past and a uniform tariff was applicable throughout the day so that the industries could carry on their production at full capacity without any interruption. “The restoration of peak and off-peak hours is going to create a very difficult situation for the industries as they will either have to curtail their production or suspend operations during peak hours and then reengage labour for resumption of pending work during the remaining non-peak hours which happens nowhere around the world but only in Pakistan where such mess usually surfaces due to poor decisions and policymaking by NEPRA which never listens to consumers and only fully facilitates DISCOs.

He appealed the Prime Minister to look into NEPRA’s matters as many decisions taken by NEPRA were purely against the consumers and in recent history, the regulator has never favored the consumers. As consumers’ point of view was never being taken seriously at the so-called public hearing, NEPRA rules must be redefined and a consumer representative must also be included in NEPRA’s penal for Public Hearings.

He further noted that the industries of Karachi were paying at least Rs10 more than what was being charged from the industries in Peshawar which was a sheer discrimination and clearly gives an impression that policies were being devised in such a manner that the industries in Karachi close down units on their own and move to somewhere else.

READ MORE: Karachi Chamber demands declaring rain emergency

Expressing deep concerns over restoration and increase in Fixed Charges, Zubair Motiwala stated that this was unacceptable as it would further increase the cost of doing business because fixed charges were applicable as per load on operational and inoperative industries who, instead of being encouraged to reactivate operations, will be compelled to stay closed. “It is an imprudent move which was neither in favour of businesses nor the economy as it would refrain the industrialists from reactivating their closed units. Hence, the government must withdraw Fixed Charges to encourage industrialization and ensure creation of maximum employment opportunities.

Chairman BMG demanded that as the entire country suffers badly due to flash floods and all the cities, villages, highways and markets are completely flooded with rainwater hence in this extraordinary situation, the government should come forward and provide relief by pardoning electricity bills for a period of at least two months with a view to support the affectees during the relief and rehabilitation activities which could last during the next two months or may be more. In this regard, any industrial, commercial or domestic consumer with an electricity bill of less than Rs2 million must be pardoned from payment of bill for two months while the electricity bills of other industries must also be deferred at least for three months so that they could take some sigh of relief and reach a point where they are able to settle their outstanding bills, he said, adding that the deferred bills can be charged later in shape of three equal monthly instalments along with current bill from fourth month onwards which would be widely welcomed as it will minimize the burden on industrialists to some extent.

READ MORE: KCCI demands release of stuck up containers

General Secretary BMG AQ Khalil demanded that as KE’s agreement was about to expire in 2023, the government must look into the possibility of ending KE’s monopoly by unbundling the utility service provider and pave way for more players in the power generation and distribution sector.

President KCCI Muhammad Idrees was of the opinion that this huge impact of around 80 percent in the electricity bills was totally unbearable and unabsorbable by any industry hence, it has to be immediately withdrawn as it was impossible to run any industry at such an inflated cost.

“The industries are already in deep crises because of the devaluing rupee, inflationary trends and eroding buying power of common man whose electricity bills have also been raised higher by at least three times”, he said, adding that neither any industry nor shops or public will be able to bear this burden in the present circumstances.

August 29, 2022
KATI flays imposition of new taxes

KARACHI: Korangi Association of Trade and Industry (KATI) expressed displeasure over promulgation of Presidential Ordinance to imposed new taxes.

KATI President Salman Aslam in a statement issued on Thursday expressed reservations over the imposition of new taxes worth Rs38 billion through a Presidential Ordinance.

Besides, he said instead of keeping the interest rate at 15 per cent, it should have been reduced considering the current situation, which would have stabilized the economy.

Salman Aslam, while reacting to the announcement of a further increase in income and sales tax on electricity bills and super tax said that the government has issued this ordinance to get additional revenue of Rs80 billion from the International Monetary Fund (IMF).

Due to this, the difficulties of the industry will increase enormously and it will be impossible to continue the industrial production process because the cost of production and electricity prices are already at the highest level in history and a further increase in them will bring the industries to the brink of collapse.

KATI chief said that along with the announcement of the agricultural policy, the Prime Minister should also announce the industrial and economic policy on the long-standing demand of the business community and industrialists so that investment in the country is promoted and the economy moves towards improvement.

Aslam said that the government is lifting the ban on imports of luxury and non-essential goods following the demand of the IMF, which will lead to the import of luxury goods despite the additional duty and outflow of valuable foreign exchange. He said that the ban on imports should have been maintained by the government.

Salman Aslam welcomed the government’s reduction in duty and import of raw materials, machinery, and other essential items.

He said that instead of imposing more taxes to collect additional revenue, the government should consult with the industrialists, and if taxes are reduced including the cost of production, tariffs of electricity and gas reduced, then the business will be faster in the country, the industrial wheel will start moving, which will help the government. The required tax target will also be achieved.

KATI President demanded the government not to increase super tax and tax on electricity bills, otherwise, industries in the country will be closed, unemployment will spread rapidly and the economic crisis will intensify due to lack of investment.

August 25, 2022
Karachi Chamber stresses need to rationalize power tariff

The leadership of Karachi Chamber of Commerce and Industry (KCCI) on Tuesday underscored the exorbitantly high electricity tariffs need to be rationalized as the suggested increased electricity tariffs would prove disastrous for trade, industry, SMEs and the public.

Chairman Businessmen Group (BMG) Zubair Motiwala and President Karachi Chamber of Commerce & Industry (KCCI) Muhammad Idrees, while highly appreciating the Prime Minister for taking notice of public and business community’s complaints/ protests on inflated electricity bills.

In a joint statement, Chairman BMG and President KCCI said that the business community was grateful to Prime Minister Shehbaz Sharif for taking cognizance of the electricity tariff but while we appreciate, we would like to apprise that the abnormal increase would actually prove to be a disaster for the industries, especially Small & Medium Size Enterprises (SMEs) who are purely dependent on electricity and no alternate source including gas was available to these energy-starved SMEs.

READ MORE: Political parties responsible for Pakistan economic crisis: KCCI

This country badly needs SMEs who must be promoted at any cost as it is a well-known fact that SMEs are the backbone of any country’s economy so supporting SMEs should be the highest priority of the government, they added.

They further opined that trade cannot absorb this kind of an exorbitant increase in electricity tariff and the commercial users will suffer badly hence it has to be rationalized. The increase had been suggested when the dollar rate jumped from Rs180 to more than Rs240 which was abnormal and due to foul play of exchange players but now as it has come down and was likely to descend further, therefore the increase in electricity tariff was not making any sense at all.

They mentioned that the Karachi Chamber along with Industrial Associations and all Chambers of Commerce of Pakistan were of similar opinion that exorbitant increase in electricity tariffs cannot be absorbed hence, we urge the Prime Minister that this needs a rational exercise and carefully looked into because it can prove to be fatal for many industries and would lead to enhancing unemployment across Pakistan while the exports will also suffer badly from this behest.”

READ MORE: Karachi Chamber demands declaring rain emergency

They also pointed out that although ECC approved electricity rate at US$9 cent per kWh to export-oriented sectors from August 1, 2022 but this decision was withdrawn which was an imprudent move as the cost of doing business in Pakistan was already too high as compared to regional competitors.

The government must keep in mind that during the last two months, the exports have been constantly decreasing hence, electricity rate at US$9 cents per kWh to export-oriented sectors must continue otherwise the country’s exports would keep on descending and create more problems for the economy particularly the rising unemployment.

While stressing the need to continuously support the exports, Zubair Motiwala and Muhammad Idrees requested that before issuance of any kind of notification, Prime Minister should look into this matter on an urgent basis so that the uncertainty which has been now triggered due to the electricity tariff hike announcement could come to an end.

They also appealed the Prime Minister to look into NEPRA matters as many decisions taken by NEPRA were purely against the consumers and in recent history, the regulator has never favored the consumers. Why is it that all the decisions taken by NEPRA favor DISCOs and KE only.

READ MORE: KCCI demands release of stuck up containers

This also needs to be seen and the recent decisions of charging FCA and bringing back the fixed charges, which were abolished long time ago but have been arbitrarily reintroduced, must also be deferred.

As consumers’ point of view was never being taken seriously at the so-called public hearing, Chairman BMG and President KCCI demanded that NEPRA rules must be redefined and out of NEPRA’s penal of three judges at the Public Hearings, one should be a representative of consumers through Chamber’s recommendation.

In the end, they reiterated that all actions taken by NEPRA should be remanded back and those in pipeline should also be stopped forthwith.

READ MORE: KCCI demands implementation of Riba free banking

August 23, 2022
KATI rejects further petroleum price hike in Pakistan

KARACHI: Korangi Association of Trade and Industry (KATI) on Thursday strongly rejected any further increase in prices of petroleum products in Pakistan.

KATI President Salman Aslam in a statement expressed concern over Federal Minister of Finance Miftah Ismail’s indication of a further increase in the prices of petroleum products.

READ MORE: Businessmen express shock over petroleum price hike in Pakistan

He said that the federal minister has asked to increase the petrol levy by Rs10 from September 1, 2022 up to Rs50 per litre, which will be very harmful to the economy.

The prices of petrol in the global markets have reached the lowest level in 5 years, while the cost of the dollar has also decreased by more than Rs30 in the past few days. In this case, the increase in the prices of petroleum products by justifying the IMF agreement is not acceptable.

READ MORE: SBP assures allowing stuck up containers of banned import

Salman Aslam said that his party leadership is also unhappy with the Finance Minister’s decision, while the government’s allies are also not supporting this initiative as it will increase inflation instead of being controlled.

He said that the finance minister has expressed his commitment to reducing inflation, but that it is not possible unless petroleum products and utility prices are reduced. It is impossible to control inflation or inflation due to the cost of production.

READ MORE: Sindh reduces sales tax on services for IT sector: SRB

President KATI said that the government does not consult or trust the business community before setting terms with the IMF, due to which government decisions affect the country’s economy.

Salman Aslam said that the government had already increased the price of electricity in the last few days, after which there was no justification for increasing the prices of petroleum products.

He appealed to the government to immediately withdraw the increase in the prices of petroleum products and keep the petroleum levy at a minimum level.

He said that the finance minister’s statement creates a chaotic situation among investors and stakeholders, directly affecting the country’s stock market and investments.

READ MORE: FPCCI demands SBP to check speculative dollar trading

August 18, 2022
AVALON – The Most Tech-Enable Real Estate Project In Islamabad

ISLAMABAD: With so many real estate projects in Pakistan on the rise, it’s close to impossible to find the most futuristic & tech-enabled, sustainable, and state-of-the-art project that’s worth investing without breaking the bank while also being trust-worthy.

Having said that, we’ve recently spotted a project that’s taking Islamabad by storm. Their streamers and outdoor billboard are literally everywhere we go.

We did a little digging and found out about this real estate giant, namely AVALON City. The masterplan is in development as Pakistan’s first technological city. This is a state-of-the-art infrastructure designed and idealised as the Future of Real State in Pakistan. Embracing their tagline, they truly want you to ‘Envision Your Lifestyle’.

We found out this project sits at an ideal location of Chakri Road, adjacent to M2 Motorway, ensuring a convenient residence and commercial success for its residents and investors. Have you ever thought about having Smart Homes, Wi-Fi trees, 3D and Virtual Theatres, Electric Bikes, Automated Traffic Control? Well, AVALON City has got it all.

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Some people are comparing it to Saudi Arabia’s The Line project.

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If you’re interested in investing or just getting to know about them, we recommend getting in touch with them directly @ [email protected], +92 (51) 6120517 or www.theavaloncity.com

August 17, 2022
Businessmen express shock over petroleum price hike in Pakistan

KARACHI: Businessmen have expresses shock over hike in petroleum prices in Pakistan despite massive reduction in oil prices in international market.

The businessmen are in shock and expressed their serious concern over the hike in petroleum products in Pakistan despite the fact that crude oil prices have plunged to below $90 a barrel while the rupee has jumped by around Rs30 versus dollar during the last fortnight, said a statement issued on Wednesday.

READ MORE: Miftah defends petrol price hike in Pakistan from August 16, 2022

The chairman of Businessmen Panel (BMP) and former president of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Mian Anjum Nisar reiterated his demand of passing on relief of cut in oil prices in the global market to the industry, besides bringing key policy rate to a regionally competitive level.

On Monday night, the federal government announced a hike of Rs6.72 per litre in the price of petrol for the remaining days of August 2022, according to a notification issued by the Ministry of Finance.

He voiced his concern over the increase in fuel prices despite downward trend in international market. The present government came into power to give relief to the masses, which should be its top priority, as the hike in petroleum prices will trigger inflation in the country.

READ MORE: New petroleum prices in Pakistan from August 16, 2022

He said that it was beyond comprehension that why prices were raised despite a reduction in oil prices at the international level, adding that the government should have mercy on poor masses and give them some relief.

Mian Anjum said when Russia invaded Ukraine last spring, energy experts were predicting that oil prices could reach $200 a barrel, a price that would send the costs of shipping and transportation into the stratosphere and bring the global economy to its knees.

Now oil prices are lower than they were when the war began, having dropped more than 30 percent in barely two months. The news of a slowing Chinese economy and a cut in Chinese interest rates sent prices down further, to less than $90 a barrel for the American benchmark.

Gasoline prices have fallen every day over the last nine weeks, to an average of less than $4 nationwide, and prices of jet fuel and diesel are easing as well. That should translate eventually to lower prices for things so that cost of production could come down to a regionally competitive level.

READ MORE: New petroleum prices in Pakistan from August 1, 2022

Moreover, a large number of fuel stations remained closed nationwide despite no strike or shortage of petroleum products in the country. He said that oil marketing companies (OMCs) and petroleum dealers have allegedly created an artificial fuel crisis as the coalition government increased petrol prices by Rs6.72 per litre.

Recent practices suggest they usually stop supplies of petrol and diesel to end-consumers for a couple of hours to make additional profit. However, this time around the suspension lasted for almost an entire day. Many petrol pumps had gone dry by Monday evening and new supplies came on Tuesday afternoon.

Federation of Pakistan Chambers of Commerce and Industry (FPCCI) former president demanded the government to reduce petroleum prices without any delay.

He demanded that the government should slash the prices of the petroleum products immediately as the international oil prices have substantively come down; and, the benefit needs to be shifted to the masses.

He noted with a sigh of relief that oil prices are now under $90 per barrel. The move will bring down the inflation in a much more effective and tangible manner than raising the interest rate to a 14-year high of 15 percent, he added.

Mian Anjum emphasized that the full force of the multiplier effect of the raise of the petroleum products has not yet materialized in Pakistan and inflation will keep rising in coming weeks if the relief from international market is not shifted to the end consumer.

READ MORE: New petroleum prices in Pakistan from July 15, 2022

FPCCI former chief explained that global macroeconomic sentiments are not optimistic and growth forecasts have been significantly lowered to the tune of being recessionary; and, the phenomenon may drive the international oil prices even lower than $90 per barrel in coming weeks. However, he maintained, we have to tread a cautious path and gradually but progressively lower the domestic petroleum prices.

The BMP Chairman called for the prudent and diligent regulation of the markets to allow the country to benefit from the downward trends in international oil prices, edible oils and initial signs of receding supply constraints in some other commodities.

He said that our industry already facing cut-throat competition in both national and international markets, as the industry was directly hit by the fluctuation of oil prices, which also directly increase inflation, he said. Its negative impact can be witnessed in the hike of cargo freight charges, which adds cost to the industrial production at all stages, he said.

August 17, 2022