Ahsan Zafar Bakhtawari, President, Islamabad Chamber of Commerce & Industry (ICCI) said that the government has made a massive hike of almost Rs.20 per litre in the prices of petrol and diesel, which would prove to be a blow to the economy. He said this while addressing a meeting of the business community.

He said that it would unleash a new wave of high inflation and further increase the cost of doing business in the country. The decision would badly squeeze the purchasing power of the already crushed common man leading to a sharp decline in the growth of business activities. The government has also hiked electricity price by Rs.7.5/unit that would multiply the production cost. He said that the price of petrol has jumped from Rs. 227/litre on 1st August 2022 to almost Rs.273/litre on 1st August 2023. Similarly, the price of diesel has surged from Rs.245/litre on 1st August 2022 to more than Rs.273/litre on 1st August 2023. This unprecedented hike in POL prices would multiply the energy and transport costs and further increase the cost of doing business due to which trade and industrial activities would badly suffer. He urged that the government should reconsider such decisions to save people, businesses and the economy from their devastating consequences.

Ahsan Bakhtawari said that the SBP has already increased the policy interest rate to 22 percent, making credit cost unaffordable for the business community. The recent hikes in POL and electricity prices would make our products very uncompetitive in the international market and cause decline in our exports. He wondered who would do business and invest in Pakistan in an environment of frequent hikes in the utility tariffs and POL products. He stressed that the government should make drastic cuts in all non-development expenditures and reduce the profit margins of OMCs instead of putting an unbearable burden on the masses and the businesses. He urged that in these difficult times, the government should avoid taking harsh measures and focus on promoting ease of doing business to improve exports and steer the economy out of current challenges.

Faad Waheed, Senior Vice President and Engr. Azhar ul Islam Zafar Vice President ICCI said that the repeated hikes in the POL prices and utility tariffs would shatter the confidence of investors who needed stable prices and tariffs to make long-term investment decisions in Pakistan. They urged that the government should reconsider the latest hikes in POL and electricity prices to save the masses, businesses and the economy from further troubles.