Karachi, August 1, 2023 – The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has strongly criticized the outgoing government for the unprecedented increase in petroleum prices, which is expected to exacerbate inflationary pressures and cripple the already struggling economy.
The recent hike has raised the price of petrol by PKR 19.95 per liter, reaching PKR 272.95, and high-speed diesel by PKR 19.90 per liter, now costing PKR 273.40.
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President of FPCCI, Irfan Iqbal Sheikh, expressed his deep concern over the government’s decision and condemned their failure to address the underlying issues in the import of Russian crude. Sheikh stated that he had previously warned the government about the need to rectify problems related to handling oil cargoes, refining processes, and commercial transactional procedures for oil payments.
READ MORE: Pakistan Shockingly Increases Petroleum Prices from August 1, 2023
Furthermore, Irfan Iqbal Sheikh pointed out that global oil markets are currently experiencing instability, and economists worldwide predict a slowdown in the demand for petroleum products due to a sluggish global economy. Considering these factors, the government’s decision to impose such a substantial and counterproductive hike in petroleum prices seems illogical and will only add to the economic challenges facing the nation. He emphasized that the demand for imported crude by domestic refineries is not expected to exceed 150,000 barrels per day, given the significant downturn in the national economy.
FPCCI’s President criticized the government’s recent electricity price increase, which further compounds the problems faced by the export-oriented industries. He expressed concerns about meeting existing export orders profitably under the weight of both electricity and petroleum price hikes.
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Irfan Iqbal Sheikh highlighted that the current economic policies of the government lack economic sense and will have a lasting impact on macroeconomic indicators for FY23 and FY24. Exports, industrial production, inflation, employment generation, and revenue targets are expected to be adversely affected due to these ill-advised decisions.
Drawing attention to the lack of consultation by the government in economic affairs, Irfan Iqbal Sheikh expressed his frustration with the Prime Minister’s economic team. As the President of FPCCI, he faces mounting pressure from the 250 chambers, associations, and trade bodies he represents to voice their collective concern over the current state of the economy.
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With the cost of living skyrocketing and domestic consumers’ purchasing power severely impacted by inflation, both domestic and international demand for Pakistani products are at an all-time low, making Pakistani products less competitive in regional and global markets.
The FPCCI urges the government to reconsider its recent decisions and adopt policies that promote economic stability, support export-oriented industries, and alleviate the burden on the common citizens. As the outgoing government prepares to leave office, the economic challenges it leaves behind will require careful and prudent management by the incoming administration.
