- It will further fuel the inflationary pressures.
- The government failed to listen to business community.
- He questioned that how existing export orders can be met.
KARACHI: President Federation of Pakistan Chambers of Commerce & Industry (FPCCI) Irfan Iqbal Sheikh has strongly condemned the massive hike in petroleum products.
It will further fuel the inflationary pressures resulting in further increase in cost of living and cost of doing business – which is already the highest in the entire region, he added.
Irfan Iqbal Sheikh explained that he forewarned the government much before that they need to address the teething problems in the import of the Russian crude, i.e. handling of oil cargoes; adjustments required vis-à-vis refining processes and commercial transactional procedures to settle oil payments.
Nonetheless, the government failed to listen to us; else, we would have more Russian crude by now, which is now more than 30 percent cheaper as compared to international markets today, he added.
He particularly highlighted that the international oil markets are in a flux and instability; and, all national & international economists agree that the demand for the petroleum products internationally will remain low for a couple of years due to slowing down of the global economy.
He reminded that just last week the government has announced PKR. 7.50 per kWh raise in electricity prices; despite FPCCI’s repeated demands that electricity and petroleum prices should be kept stable – if not subsidized or reduced for the export-oriented industry.
He questioned that how the existing export orders can be met in a profitable manner after the double blow of electricity and petroleum price hikes?
FPCCI Chief has expressed his profound concerns that domestic and international demand for Pakistani products will be at an all-time low as inflation has severely affected the purchasing power of the domestic consumers and, for international & regional markets, Pakistani products have become uncompetitive. Government policies make no economic sense, he added.
Irfan Iqbal Sheikh recalled that the government has missed all macroeconomic indicators & their targets for FY23 and, for FY24, these two bad decisions will have a lasting effect on all economic performance indicators: be it exports, industrial production, inflation, employment generation and revenues.
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