The government needs to review the increase in petroleum products prices on priority basis and relief should be given to industry and people, said Mian Zahid Aslam, President Faisalabad Chamber of Commerce & Industry (FCCI) on Saturday.
He said the industry was already suffering due to high manufacturing cost and the current increase in POL prices would add to the cost of production and it would become very difficult for the products to compete in the foreign markets.
He said the surge in domestic oil prices would of course have negative consequences for the economy and the lives of ordinary people. He said the rise in prices had overall impact in direct proportion to the increase on all other sectors and products cost, ranging from transportation to industrial products including daily necessities as well as services.
He said this would also leave painful impact on the ordinary persons who were suffering a lot due to cost-push inflation in the country. He said that the country’s economy was turning to its revival pace after a long stagnation. He said with the increase in cost of production, industrial activities could slow down and depress growth prospects of economy adding to the incidence of unemployment and raising the poverty level in the country which was already high.
He said consistency in the inputs and utility cost should was a key requirement in making long-term business and industrial expansion plans. Such frequent and high increase in POL products might shatter the confidence and leave negative impression and impact on the local and foreign investors which are dire need of the country for economic stabilization. He said that there are international practices for fiscal space in the Budgets to absorb the increase in international prices of oil to offset or lower the impact.
He said that energy crisis, deteriorating law and situation and high input cost along with current devaluation of Pak Rupee have already hurt badly the industrialization and economy growth in the country. Any slight increase in the POL product would multiply the cost of doing business, affecting the productivity of economy and competitiveness of exports and depriving the country of the precious foreign exchange earnings.
He urged the government to immediately withdraw the hike in POL prices to save the industry and people from further depression.