KARACHI: President of the Korangi Association of Trade and Industry (KATI), Muhammad Ikram Rajput, has raised concerns about the federal government's recent decision to increase petroleum prices, stating that it will add pressure on industries, businesses, and consumers, potentially triggering more inflation and risking industrial closures. The government has raised petrol prices by Rs13.18 per liter, high-speed diesel by Rs13.80 per liter, and kerosene oil by Rs11.19 per liter.

According to Korangi Association of Trade and Industry, the price hike is anticipated to elevate transportation and production costs, leading to increased prices of essential commodities, thereby intensifying the financial strain on both the public and the business sector. The industrial sector in Pakistan is already under pressure due to high production costs, inflation, expensive energy tariffs, and significant taxation, among other factors. The recent fuel price increase is expected to further weaken the competitiveness of Pakistani products in both regional and international markets.

Rajput has criticized the government's pricing strategy, alleging that while authorities delay passing on the benefits of declining global crude oil prices, they are quick to implement domestic price increases when international oil prices rise slightly. This approach has reportedly led to dissatisfaction among the public and the industrial sector, as they perceive a lack of meaningful relief from the government.

The KATI president cautioned that the fuel price increase could have extensive consequences across all sectors of the economy. He indicated that higher inflation and production costs could result in business closures, increasing unemployment rates. Export-oriented industries might also experience higher operating costs, negatively impacting exports and discouraging investment.

Rajput urged the government to significantly reduce the petroleum levy on fuel products to provide financial relief to consumers and industries. He called for a review of the recent fuel price increase and emphasized the need for business-friendly policies to achieve economic stability, attract investment, boost exports, and create job opportunities. He also highlighted the importance of involving industrial associations and the business community in consultations before making crucial economic decisions, to maintain the competitiveness of Pakistan’s manufacturing and export sectors amidst the current regional and global economic environment.