PESHAWAR: FPCCI Acting President Zubair Ali Khan rejected an unnecessary increase in oil price and urged government to withdraw the current rise in oil prices.
Three times increase in oil prices only in the August reflects the government as failure of its wrong based on anti-people friendly.In a press release issued by the Head office of FPCCI, FPCCI Acting President further stated that rise in oil prices would not only create inflation, it would also impact negatively on trade and industry. He said, “Unfortunately, our country is already facing a crisis in term of closure of industries due to bad law and order situation and shortage of gas and electricity, resulting flight of capital and massive unemployment and decline in government revenue.”
The continuous rising of oil price was unfavorable towards the sustainability of economy, as it severely affect the industrial sector growth. He added that our manufacturing sector grew by 2 to 3 percent in last two years, whereas it used to grow 14 to 15 percent in 2004 and 2005. He further stated that POL prices have been revised upward three times in a month, and its prices have been increased to 23 percent rise in the last two months.He further stated that petroleum prices not only reduced the foreign direct investment, it also shifted the domestic investment to other countries, which increased the unemployment in the country and rising budget deficit to 8.5 percent of GDP, which also indicated the alarming situation for the government.
He said it was high time that government gave relief to industries specially Khyber Pakhtunkhwa and FATA industries, but government is doing the opposite. He said, the rising of oil price also reduces the competitiveness of country and creates inflation in the country, which Pakistan already faces in double digit since 2008. Reduction of interest rate by 150 basis points was a good measure of State Bank of Pakistan, but rise of oil price don’t allow us to make new investments in the country.
Without investment in manufacturing sector, the growth and development of Pakistan was not possible. FPCCI Acting President said that, in the current time there was a dire need that government should concentrate on inflation, unemployment and bad law and order situation, but our government focus on rising of oil price. FPCCI urged the government to withdraw this rise of oil price and fix it for medium to long term to create economic stability in country. – PT
