KARACHI: The Overseas Investors Chamber of Commerce and Industry (OICCI) has justified the rise in prices of petroleum products, stating the decision to not revise them would have been an error.
Secretary OICCI Abdul Kaleem defended the price hike in petroleum products and backed his opinion by stating prices of oil in international markets had risen and major depreciation of the rupee in the past several months reported Express Tribune.
Aleem shared the government had been gathering taxes in rupees and is paying for petrol in dollars and since the rupee has significantly eroded in value alongside an increase in international oil prices, the recent hike in petroleum product prices was unavoidable.
He added businesses needed to digest the price increase as much as possible and replace it with better productivity.
The OICCI secretary said if complete absorption wasn’t feasible, it should pass some of the hike to consumers.
He believed politics should not predate economics and Pakistan required to follow benchmarks and take steps when needed.
These views come on the back of the interim government’s decision to raise prices of petroleum products by up to 9 percent, which irritated many consumers.
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) requested caretaker Prime Minister Nasirul Mulk to review the increase in prices of petroleum products.
The FPCCI lambasted the government for increasing prices of petroleum products and taking short-term decisions on the excuse of economic stabilization.
It recommended the government to formulate proper economic policies for raising its revenues and stabilize the economy on sound footings.
Senior Vice President Mazhar Ali Nisar FPCCI said: “Instead of using petroleum product prices as a tool to generate revenues, the government should curtail its unnecessary expenses, take austerity measures and widen the tax net.”
Nisar highlighted the rise in prices of petroleum products would have an impact on trade, industry and economic activities which were already facing major challenges.