Karachi – Khurram Ijaz, General Secretary of the Businessmen Panel Progressive (BMPP) and former Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has expressed serious concerns over a potential surge in unemployment following recent economic decisions by the government.
In a statement, Khurram Ijaz highlighted that the increase in petroleum prices and the hike in the policy rate could significantly slow down industrial productivity and commercial activity across the country.
He stated that both measures carry multiple adverse impacts, particularly for businesses and the general public. “The 100 basis points increase in the policy rate has made borrowing more expensive for the private sector, raising the cost of doing business,” he said. He added that the surge in petroleum prices would fuel inflation and create a multiplier effect on the cost of industrial raw materials.
The State Bank of Pakistan increased the benchmark policy rate by 100 basis points to 11.50 percent on April 27, 2026. Ijaz termed the decision ill-timed and detrimental to economic growth, especially at a time when the economy is in a fragile recovery phase.
Ijaz further noted that Pakistani exporters are already facing intense competition in global markets, and any additional increase in costs would make their products less competitive internationally.
He also criticized the government for increasing petroleum prices instead of reducing the petroleum levy from May 1. According to him, the rise in fuel prices—amid ongoing Middle East tensions—has already pushed inflation close to 11 percent in April 2026.
“Inflation acts as an indirect tax on citizens,” Ijaz said, warning that rising prices would reduce purchasing power, slow economic activity, and lead to large-scale unemployment.
He cautioned that reports of potential increases in electricity and gas tariffs could further worsen the situation. Such measures, he warned, would add to the financial burden on both the public and the business community, pushing the economy toward deeper challenges.