Karachi, 16 Oct 2023: In response to the Caretaker Prime Minister Anwarul Haq Kakar's government decision to decrease petroleum prices by Rs40 per litre, the Karachi Chamber of Commerce Industry (KCCI) has extended its commendation, noting the potential benefits for both consumers and businesses amidst rising inflation. The move, attributed to the international market's downward trend and the rupee's strengthened position against the dollar, is forecasted to positively impact the nation's economy.
According to a joint statement released by Chairman Businessmen Group (BMG) Zubair Motiwala and President KCCI Iftikhar Ahmed Sheikh, this marks the second consecutive cut in petroleum prices. The leaders emphasized that while this reduction could alleviate some inflationary pressures, an efficient price control system for household goods, backed by rigorous enforcement of government rates, is crucial to further aid the financially burdened populace.
Drawing attention to the energy sector, Chairman BMG Zubair Motiwala expressed his aspirations for the Care Taker Prime Minister to implement decreased power tariffs and design solutions addressing the prevalent issues of gas load shedding and reduced gas pressure plaguing Karachi's seven industrial zones. Motiwala emphasized the urgent need for interventions, citing hindrances faced by industrialists in sustaining production levels and achieving export targets due to the declining gas supply. He also expressed concerns regarding a potential exacerbation of these issues in the impending winter, urging timely legislative action.
Highlighting recent trends, Motiwala remarked on the 9.5% dip in KE's industrial sales over the past quarter, coinciding with electricity tariff hikes. He criticized the current approach to manage circular debt, which leans towards elevating energy rates rather than exploring other avenues like curbing thefts, managing technical line losses, and revisiting agreements with Independent Power Producers (IPPs) in light of the dollar's appreciation.
With the industrial sector bearing the brunt of rising energy costs, Motiwala asserted that any further hikes in gas prices could be detrimental to local industries. He underlined the significance of pragmatic interventions to halt the ongoing industrial downturn, while lauding the government's decision to pass on the benefits of the international oil price drop to Pakistani citizens.
On a similar note, President KCCI Iftikhar Ahmed Sheikh accentuated the direct advantages that reduced petroleum prices could bring about for the public, especially as fuel and electricity serve as vital economic drivers. He further urged a review of Inter-city transportation tariffs, which typically surge with rising POL prices but witness marginal reductions when the rates decline. Sheikh called for the establishment of a system ensuring that the advantages of decreased oil rates extend to both the general public and the industrial sector.