KARACHI – Business leaders in Karachi have strongly condemned the government’s sharp increase in petroleum prices, warning it could derail economic recovery and intensify inflationary pressures across Pakistan.
The Korangi Association of Trade and Industry (KATI) termed the hike “counterproductive” to growth, as petrol prices surged by Rs26.77 per litre to Rs393.35, while high-speed diesel climbed to Rs380.19 per litre, according to the latest official notification.
KATI President Muhammad Ikram Rajput expressed grave concern, stating that the increase would significantly raise production costs, disrupt industrial operations, and weaken export competitiveness. “Expensive fuel translates directly into expensive production,” Rajput said, adding that the additional burden would inevitably be passed on to consumers through higher prices of essential goods.
He warned that industries, already struggling with high electricity tariffs and elevated borrowing costs, may find it increasingly difficult to sustain operations. Rajput urged the government to reduce petroleum levies and taxes to bring relief to both businesses and the general public.
Echoing similar concerns, Muhammad Kashif Sabrani, Chairman of the All Traders Sindh Ittehad, rejected the price hike outright, calling it “an injustice” to traders and citizens alike. He highlighted worsening business conditions in Karachi, where rising operational costs and declining consumer purchasing power have already strained the commercial sector.
Sabrani warned that inflation, already elevated, would accelerate further due to higher fuel costs, impacting transport, logistics, and food prices nationwide. He painted a bleak picture of small business owners struggling to meet expenses, questioning how traders could survive under mounting financial pressure.
In an unusually strong appeal, Sabrani called on top state authorities, including Asif Ali Zardari and Shehbaz Sharif, to intervene and announce an immediate reduction of Rs200 per litre in fuel prices to provide urgent relief.
Analysts say persistent increases in energy costs could slow industrial output, reduce employment opportunities, and further strain Pakistan’s fragile economy if corrective measures are not taken swiftly.