KARACHI: The business community has expressed its disappointment over the recent hike in petroleum and diesel prices by Rs7.45 and Rs9.56, respectively, according to a statement issued on Monday.
Businesses fear this increase will not only raise the cost of doing business but also exacerbate the hardships faced by ordinary people. Iftikhar Ahmed Sheikh, President of the Karachi Chamber of Commerce and Industry (KCCI), stated, “It seems that the government has decided not to share any burden or shoulder any responsibilities, instead shifting the entire load of the ill-performing economy onto industries and the poor.” He added that this has caused widespread anxiety among people from all walks of life.
Sheikh noted that while the price hike aligns with international market trends, the government should have mitigated the impact on consumers by reducing a portion of the high petroleum development levy. Unfortunately, this measure was not taken.
He emphasized that the price hike comes at a time when the nation is already overburdened by inflation. The business community and ordinary people, especially salaried individuals, are still reeling from the recent budget announcements, which imposed heavy taxes. Now, they face the added burden of rising petroleum prices.
Sheikh believes the increase in petroleum prices will negatively impact industrial production and lead to higher prices for household commodities. He argued that the harsh decisions in the budget, combined with the recent price hike and high energy tariffs, are squeezing both industries and ordinary people. This situation, he warned, could lead to public protests against the government’s policies.
In his statement, Sheikh urged the government to implement strict structural reforms for good governance, reduce unproductive expenditures, expand the tax base, foster public-private partnerships, and reallocate resources to critical sectors to stimulate sustainable growth. Without these measures, he warned, the economy may struggle to survive if businesses and people continue to be overburdened.
Sheikh called on the government to urgently take steps to reduce the cost of industrial inputs, including electricity, gas, and petroleum products, to revive the economy and save businesses from collapse.
