With ninety per cent increase in petroleum prices in last four years and substantial increases in electricity cost and gas prices, the manufacturing cost of exportable goods has increased substantially making Pakistani exports uncompetitive at the international level. This is a windfall opportunity for our rivals, India, Bangladesh and China to capture our hard won markets. A large number of local industrialists are convinced that the recent petroleum increase is an anti-industrial decision at a time when the economic activities are shrinking due to multiple factors and this hike will produce overall damaging effects on the economy.
This drastic increase in the prices of petroleum products will not only affect the industrial productivity, but will also put an adverse impact on the country’s overall economy. Due to multiple increases in tariffs of electricity and gas, productivity of industries have also been affected and the recent hike will directly affect the industrial sector. Due to rising cost of production in Pakistan, foreign investors are moving to other countries of the region. Current state of economy demands that government should create conducive environment for better growth of economic activities. However, such anti-business decisions will reduce industrial and commercial activities ultimately decreasing tax revenue for the government making already fragile economy further weakened.
