KARACHI: The business community has expressed its disappointment over the latest hike in the prices of petroleum and diesel by Rs7.45 and Rs9.56 respectively, in a statement issued on Monday.
Businesses fear that this hike will not only hit the cost of doing business but also aggravate the hardships for ordinary people.In the statement, President of the Karachi Chamber of Commerce and Industry (KCCI) Iftikhar Ahmed Sheikh said that “it seems that the government has decided not to share any kind of burden or shoulder any of its responsibilities as the entire burden of the ill-performing economy is either being shifted to industries or to poor people.” This, according to him, has triggered a lot of anxiety among people from all walks of life.”
He said that although the hike in petroleum prices has been announced in line with the increasing trend in international markets, the government, instead of passing on the impact of international prices to consumers, should have acted leniently by sacrificing a meagre portion of the excessively high petroleum development levy, but, unfortunately, this was not done.
Per the president, this would have been the right step under the prevailing circumstances when the entire nation is terribly overburdened due to inflation.“The business community as well as ordinary people, particularly salaried individuals, were still in a state of shock due to announcements made in the budget wherein heavy taxes have been imposed,” he said, adding that now “they have been mercilessly forced to bear the brunt of rising petroleum prices as well.”
Iftikhar believes that an increase in petroleum prices will have a negative impact on industrial production and lead to further hikes in the prices of almost all household commodities.He is of the view that all the ruthless decisions taken in the budget, along with the recent hike in petroleum prices and the stubbornly high energy tariffs, are squeezing not only the industries but also ordinary people who are losing their patience and are ready to come out on the streets anytime to strongly protest against the government’s anti-people and anti-business approach.
He stressed in the letter that instead of taking harsh steps -- particularly those taken in the federal budget -- the government should implement strict structural reforms for good governance, curb unproductive expenditures, expand the tax base, foster public-private partnerships, and reallocate resources to critical sectors to stimulate sustainable growth, “otherwise it will be difficult for the economy to survive if the government continues to overburden businesses and people.”
Iftikhar urges the government to take steps on a war footing to bring down the cost of industrial inputs, including electricity, gas, and petroleum products, so that the economy can be revived and businesses saved from collapse.