KARACHI: Businessmen and industrialists have asked the government not to discourage trade activity by increasing cost of manufacturing through raise in electricity, gas and petrol prices.
Industrialists have lashed out at the government for scaling up petroleum prices on January 31, urging it to withdraw the decision for the sake of struggling industry of the country owing to energy shortages.
Saleem Parekh, Chairman of SITE Association of Industry, told The News that the government is forcing industries to shut down by increasing the cost of manufacturing. “I don’t think that the government has any alternative plan for reducing industrial output,” he regretted. Pakistan is putting all the blame on the International Monetary Fund (IMF) without pointing out its own inefficiencies whether these are high energy prices or circular debt.
Parekh lambasted the State Bank of Pakistan’s decision to maintain the benchmark interest rate at 12.5 per cent, saying that if it was that much important to maintain the interest rate then some incentive should be given to the export and value added industry.
The government should immediately end the problem of circular debt otherwise energy prices would continue to increase and consumers especially industrialists would be compelled to shut down the industry, he said. “With the rising cost of production and continuous government failure in controlling it, I don’t think the government has any vision for the economy and especially for manufacturing, he lamented, adding that Pakistan was fast turning into a consumer economy and the government has been continuously pressing local industry.
Razzak Hashim Paracha, Chairman of Korangi Association of Trade and Industry (KATI), one of the biggest industrial zones of the country said the government should not raise petroleum prices if international oil prices hover under $80 per barrel.
He said rising energy prices in Pakistan has been rapidly eroding the industrial base of the country. The industry is facing a very tough time as cost of production and law and order situation are some of the major problems hurting manufacturing.
Sultan Ahmed Chawla, President of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has taken strong exception to the increase in prices of petroleum products, across the board, made effective from Monday, by the Oil and Gas Regulatory Authority (OGRA).
Chawla termed the surge totally unjustified. In reality it is aimed at meeting the IMF dictated revenue target which could have been met through other available means, including cuts in government expenses.
The increase in prices of petroleum products would further undermine industrial growth already reeling under power shortages and outages.
A number of industrial units are already closed or are operating at below optimum levels. The OGRA must revise its decision and withdraw the increase with immediate effects.
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