Karachi, Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has voiced strong opposition to the recent government decision to increase petroleum prices by 5% within a two-week period. This increase comes despite a decrease in international oil prices and stabilizing economic indicators, which, As per Sheikh, should have allowed the government to maintain the status quo on fuel costs.

According to Federation of Pakistan Chambers of Commerce and Industry, the price of petrol has risen to PKR 293.94 per liter and high-speed diesel to PKR 290.38 per liter as of April 16. Sheikh highlighted several economic stabilizers that should have provided a buffer against the need to raise fuel prices, including a $2 billion increase in Saudi Arabia's foreign exchange deposit to Pakistan's State Bank, bringing it to a total of $5 billion. Additionally, the recent completion of an IMF Stand-By Arrangement (SBA) and the negotiation of a long-term IMF Extended Fund Facility (EFF) are expected to stabilize the Pakistani rupee and strengthen economic resilience.

Sheikh also noted that the unnecessary hikes in petroleum prices could have wide-ranging inflationary effects, impacting the cost of essential goods and services across Pakistan. He criticized the government's handling of economic policy, particularly its failure to address issues related to the import of cheaper Russian crude oil, which could have further alleviated cost pressures.

Furthermore, Mr. Saquib Fayyaz Magoon, Senior Vice President of FPCCI, pointed out that core inflation has decreased to 12.8% and headline inflation to 20.7% as of March 2024, marking the lowest rates in 22 months. Magoon argued for a reduction in the key policy rate and the introduction of competitive financial support schemes for exporters to capitalize on these improving economic indicators.