Petrol crisis adding fuel to fire: ICCI

Urges govt to overcome petrol crisis to save economy which is already suffering due to power and gas load shedding

Islamabad Chamber of Commerce and Industry (ICCI) has lambasted the poor performance of government in managing the import of oil, citing it as a reason for the present petrol crisis.

The industry and people were already facing huge power load shedding and gas shortage issue while the metro bus project has also added to the woes of the residents of twin cities. Now the petrol crisis has added fuel to the fire.

ICCI President Muzammil Hussain Sabri, Senior Vice President Shakil Munir, Vice President Ashfaq Hussain Chatha said that due to the petrol crisis, movement of raw material and finished goods has been disrupted causing severe losses to business and industry.

Moreover, it has become difficult for patients, students and employees to reach hospitals, schools and offices respectively. They said that the country was plunging into deeper crisis while government has failed in developing sound strategies to steer the economy out of troubled waters.

They said that the petrol issue has been brewing since long as Pakistan State Oil’s (PSO’s) receivables have exceeded Rs 200 billion due to which it started defaulting on its obligations in November 2014 while banks also refused to provide it loans. However, despite these ominous conditions, the government did not take any corrective measures to stem the rising crisis, they lamented.

PSO meets almost 65 percent of the POL needs of the country but is facing serious “liquidity crunch” and the government should urgently come forward to help it out of current troubles because if left stranded, the whole wheel of the economy would come to a grinding halt, said the ICCI head.

PSO has reportedly sought Rs 100 billion to restore import of oil for keeping the energy cycle running, they said and urged the government to immediately release needed funds to PSO as “piecemeal payments being made to it would not help in coping with this serious issue”, they said.

Terming the surging power sector circular debt, which has now crossed Rs 500 billion as the main cause of the crisis, they stressed upon the government to take urgent measures to deal with the issue.

They were of the view that if a sustainable solution of circular debt was not found, the whole energy chain of the country could collapse, plunging the whole economy into deep crisis.