Islamabad Chamber of Commerce & Industry (ICCI) has resented the increase in the prices of petroleum products and called upon the government to withdraw this increase as it was against the interests of business community and the common man. Government has raised the petroleum oil products’ prices by an amount ranging from Rs.4.37 per litre to Rs.5.61 per litre in the country for the month of December 2009.

Zahid Maqbool, President, ICCI, chairing a meeting, said that the drastic increase in the prices of petrol and petroleum products will not only affect the industrial & agricultural productivity, but will also put an adverse impact on the country’s overall economy.

He said this hike will produce multiple negative effects as it will put extra burden on the general public by increasing transportation cost for them, give rise to inflation by enhancing carriage costs for fruits, vegetables and other eatable items apart from hiking production cost for industrial and agriculture sectors where diesel was a major input for running tube wells to irrigate the farms. It will also badly hit the exports as it would be very difficult for exporters to compete in the world market due to high production cost.

He said already the government has increased the price of electricity by 32 percent over the last one and a half year while 10 percent hike in petroleum from Dec: 2009 and 18 percent increase in gas price from January 2010 will greatly push up the cost of doing business in the country shattering all hopes for economic revival apart from giving a fatal blow to the poor masses.

Zahid Maqbool said that the common man as well as the business community had lot of expectations from the present government, but its steps were dashing all their hopes for a better future. He suggested that instead of shifting the whole burden of rising oil prices to businesses and poor masses, government should tight its own belt by slashing all its unnecessary, non-developmental and non-productive expenditures.

He said the international market demanded quality products to have competitive edge for which Pakistani exporters needed due encouragement and facilities. He said there was a need of avoiding such harmful steps for the best interest of the masses and the business community particularly in the present era of competitiveness when the exports of the country were continuously on the decline.