Karachi, 16 Oct 2023: Mian Zahid Hussain, Chairman of National Business Group Pakistan, President of Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance, commented on Monday about the substantial decrease in petrol prices, expressing that it will bring respite to the masses. Crediting the drop to the decline in international oil prices and the strengthening of the rupee, he conveyed optimism that if the dollar's value continues to drop, additional relief could be extended to the public.
In recent discussions with members of the business community, Hussain elaborated that this will be the second reduction in petrol prices in just two weeks, which would benefit the entirety of the nation. The price of petrol has been decreased by 40 rupees per litre, and high-speed diesel by 15 rupees per litre. However, the latter saw a less significant drop due to the government's obligations to meet budgetary objectives and to adhere to agreements made with the International Monetary Fund (IMF), specifically the commitment to garner Rs 869 billion from the petroleum levy within the year.
The reduction in petrol pricing is poised to diminish transportation expenses across various modes, including cars, motorcycles, taxis, and rickshaws. Conversely, the impact from the slight dip in diesel prices will be comparatively limited, considering its primary utilization in sectors like heavy transportation, railways, and agriculture.
Mian Zahid Hussain also brought attention to the current fiscal environment, stating that there has been no sales tax collected on petroleum products thus far. He highlighted positive economic indicators, such as the anticipated production of 12 million bales of cotton this year, a 12 percent increase in wheat yield, a rebounding auto industry, and a strengthening stock market. Additionally, he mentioned the profitability of banks, the resurgence of remittances, and the expectation that rice exports could surpass three billion dollars within the year. Hussain concluded by emphasizing the urgency of implementing privatization plans, which he believes can avert significant economic challenges for Pakistan.