KARACHI: Abdul Rehman Fudda, President of the SITE Association of Industry Karachi, has issued a stark warning that Pakistan's industrial and export sectors are under threat due to the government's fluctuating petroleum pricing policy, which has led to increased transportation costs and supply chain disruptions.

According to SITE Association of Industry, the frequent changes in fuel prices have introduced significant uncertainty for businesses, pushing the industrial supply chain toward a standstill. Fudda highlighted that the rising freight charges are affecting the delivery of raw materials, elevating production costs, and making it more expensive to transport export goods to ports.

"The government is exposing industry and exports to serious damage through an unpredictable fuel pricing mechanism," Fudda stated. "The consequences we warned about are now clearly visible."

Fudda called on the government to revoke the daily pricing policy, lower taxes on petroleum products, and establish a more stable pricing system with reviews every 15 days. He emphasized that such measures are crucial for effective production planning, procurement, shipment scheduling, and the survival of export-oriented industries.

He also criticized the government for not adhering to its agreement with transporters to extend the fuel price revision period to two weeks, noting that despite the passage of 10 days, no practical action has been taken.

Fudda further pointed out that the government had increased dealers' margins and that oil marketing companies are seeking higher margins as well. He urged the government to focus on providing broad-based relief by reducing petroleum taxes, arguing that this approach would benefit industries, businesses, and consumers directly. He reiterated the need to end the daily fuel pricing mechanism and reduce petroleum taxes to alleviate the burden on society.

Fudda concluded by appealing to the authorities to cut petroleum taxes, fulfill the agreement with transporters, and cease daily price revisions before escalating logistics costs further harm industrial production, employment, and exports.