Representatives of industrial and export-oriented value addition sector of the country fear that the rise in petroleum prices is going to raise costs of production eventually.
Recently, the price of petrol has been revised upward from Rs 71.29 per litre to Rs 73 per litre and high-speed diesel to Rs 82 per litre.This is the second upward adjustment in fuel prices in the past 16 days and the 4th consecutive hike in 32 days.
In contrast, the government did not pass on the full benefit of declining oil prices in the international market to the public.
Representatives of various business and export associations believe it could have been an appropriate measure if the government had taken steps to keep petroleum prices stable by absorbing the burden of rising fuel prices.
It is feared that the country’s industries, which have already been challenged on various fronts are likely to suffer extra following this act, the representatives further added. Furthermore, it was stated that the business community had always been calling on the government to take measures for promotion of alternative fuels, as trade deficit was fast widening due to heavy imports. The rise in petroleum products’ prices is bound to give a further blow to the industry, they stated.
The rates of kerosene oil and light diesel oil have also been increased from Rs 43.25 per litre to Rs 44 per litre and from Rs 43.34 per litre to Rs 44 per litre, respectively.
The business community appealed that the government’s announcement of Rs 180 billion package for the revival of export-oriented industries should be implemented without delay along with stability in fuel prices.
The traders were concerned over the decline in exports and an increase in trade deficit mainly due to increased cost of doing business, which had adversely affected the export sector.
They said that following an alarming increase in trade deficit of the country during July 2016 to January 2017, Pakistan’s external sector was facing increased pressure, as its trade deficit had widened by 28.7 pc to reach $17.4 billion due to a continuous decline in exports and double-digit growth in imports.
