KARACHI: The Korangi Association of Trade and Industry (KATI) has raised significant concerns regarding the government's decision to implement daily revisions of petroleum product and energy prices. The association warned that this approach could foster uncertainty across industry, trade, transport, and consumer sectors, rather than bolstering economic stability.
According to Korangi Association of Trade and Industry, KATI President Muhammad Ikram Rajput highlighted that the proposed daily fluctuations in petroleum prices would severely impact effective business planning for industrialists, traders, and investors. Rajput emphasized that manufacturing operations, raw material procurement, production schedules, supply chains, sales, and export commitments rely heavily on predetermined cost estimates. Frequent changes in fuel prices would complicate accurate cost forecasting, potentially disrupting production activities and weakening industrial competitiveness.
Rajput criticized the government for introducing this proposal without consulting the business and industrial community, cautioning that such a policy could have negative repercussions for the national economy. He argued that while daily fuel pricing might suit developed economies with robust purchasing power, in a developing country like Pakistan, where inflation and poverty are closely linked to fuel prices, the policy could unduly burden businesses and consumers.
He warned that small and medium-sized enterprises (SMEs) would face heightened administrative and financial pressures, with the transport and logistics sectors being particularly affected. Rajput also cautioned that the export sector could lose competitiveness due to the inability to accurately estimate production costs, leading to weakened investor confidence.
Rajput urged the government to reconsider the proposal, stressing the need for policy consistency and stability in Pakistan's economy. He recommended that any pricing mechanism should involve meaningful consultation with representatives from the industrial, commercial, and transport sectors to ensure it protects the interests of the economy, the business community, and the public.