Atif Ikram Sheikh urges government to reduce diesel costs, cut PDL burden and improve Pakistan’s regional competitiveness
KARACHI: President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Atif Ikram Sheikh, has urged the federal government to adopt a realistic approach to petroleum pricing, particularly high-speed diesel (HSD), to reduce the rising cost of doing business and improve export competitiveness.
Atif Ikram Sheikh said the current fuel pricing mechanism was significantly increasing logistics, transportation and agricultural supply chain costs across Pakistan.
He described diesel as essential for the country’s transport, agriculture and manufacturing sectors, warning that high diesel prices were adding to inflationary pressures and making business operations increasingly expensive.
The FPCCI president said the government should pursue a realistic fuel pricing policy if Pakistan wants its industries to remain regionally competitive and expand exports.
He argued that petroleum products should not be used primarily as a revenue collection tool through the petroleum development levy (PDL).
According to Sheikh, although fluctuations in global crude oil prices affect domestic fuel rates, the heavy burden of PDL and taxes has made the cost of doing business difficult for both small and medium-sized enterprises and large-scale manufacturers.
He urged the Ministry of Finance and the Ministry of Energy to rationalise diesel prices, saying lower rates would reduce transportation costs and provide relief to producers and consumers facing inflation.
The FPCCI chief also highlighted the impact of diesel prices on agriculture. He said reducing fuel costs for tractors and tube wells could help lower agricultural expenses and contribute to stabilising domestic food prices.
On export competitiveness, Sheikh said Pakistani exporters were facing a significant disadvantage compared with competitors in the region.
He said recent comparative data indicated that fuel prices in Pakistan had risen above regional averages, primarily because of the high PDL burden.
Sheikh noted that export competitors including India, Bangladesh and Vietnam had managed domestic energy price pressures more effectively and had taken measures to shield their industries from sharp increases in fuel costs.
He warned that without competitive business costs and affordable logistics, Pakistani manufacturers could face widespread closures and lose further global market share.
The FPCCI president urged the government to review tax margins on petroleum products and provide maximum possible relief to industry.
He stressed that sustainable economic growth required policies that facilitated businesses, promoted industrial expansion, increased exports and created employment opportunities.
The FPCCI said it remained committed to working with the government to develop business-friendly economic policies aimed at strengthening Pakistan’s industrial and export sectors.