Rise in fuel, gas, power prices to increase cost of production

Federation of Pakistan Chamber of Commerce and Industry (FPCCI) and Lahore Chamber of Commerce and Industry Monday said the higher cost of production, owing to abrupt increased prices of petroleum products, gas and power would eventually lead to cut in export orders.

President FPCCI, Senator Haji Ghulam Ali told APP that abrupt increase in petroleum product’s prices would further disturb the industrial sector, especially manufacturers, already hard hit by high input costs including prolonged gas, power load shedding as well as weak Pak rupee against dollar. All this would hamper the industrial production in the country, he expressed his apprehension.

Vice President SAARC Chamber of Commerce and Industry, veteran trade leader Iftikhar Ali Malik said that the industry was already facing severe energy crisis, increase in electricity tariffs, and the raised prices of petroleum at this critical juncture would squeeze the liquidity.

He said that high tariff of power, gas and petroleum had created another severe liquidity crunch for importers of industrial raw material.

He said that keeping in view the business scenario world over, the high rate of mark up by banks be reduced to single digit to provide solace to hard hit industry. He warned that the national economy would suffer further if immediate corrective measures were not taken to save the industry.

SVP LCCI, Meher Kashif Younis, VP Saeeda Nazar, executive members Aftab Ahmad Vohra and Mian Waqar Ahmad said that increased fuel, gas, prices would further burden the industrial sector which was already facing high mark up rate and serious energy crisis.

“All these factors are increasing the cost of doing business”, they stressed.