Government’s decision to increase gas prices by 13.5 per cent will have devastating repercussions for the national economy as it would not only oust the export-oriented industries from the international export market but also contribute to rising prices in the local market, therefore the government should immediately withdraw the gas hike. This was said by LCCI President Shahzad Ali Malik.
In a statement issued, Malik said that the increase in gas tariff is a bombshell for an inflation stricken nation and is bound to jack up inflation besides creating multiple problems for the government. He said lamented that on August 1 the prices of petroleum products were raised, on August 2 the prices of electricity were increased and subsequently a 13.5 per cent increase in gas tariff was announced by the government.
The LCCI President said that the economy of the country was going through a very critical juncture and even the slightest raise in the cost of production, could spell doom for Pakistani merchandise in international export markets. This would resultantly deprive the national exchequer of billions of dollars in foreign exchange.“Textile is one of the most value-added and export-oriented sectors in Pakistan which accounts for more than 60 per cent of total exports of the country.
95 per cent of its inputs are locally produced and by making energy out of their reach, government is in fact curbing the use of local inputs,” Malik added. He argued that the contention which has been portrayed by gas companies time and again that their prices are cheaper than several other countries is illogical because the prices quoted by them are not co-related with the cost of living index and hence do not depict a true picture. Malik urged the Prime Minister, Yousaf Raza Gillani, not to grant approval to any proposal aimed at destroying the image of the government in the larger interests of the economy.
