KARACHI: All Pakistan Business Forum (APBF) said in statement that high cost of doing business has proved to be dangerous for Pakistan’s economy, discouraging investment both in capacity and capability, calling for lessening burden of heavy taxes on energy sector.

APBF President Syed Maaz Mahmood said that industry has been overburdened due to recent increase in electricity tariffs which is aggravated by extraordinary upsurge in petroleum prices, triggering severe anxiety not only amongst masses but also the business and industrial community.

He urged government to shut down all costly oil-fired power plants in order to ensure consumers had access to cheaper energy. He lamented that previous administration did not prioritise rehabilitation and maintenance of older power plants, resulting in multiple system constraints and significant losses.

He observed that government’s inability, ill planning and financial woes had multiplied miseries of businesses which were facing unscheduled power outages across country. At same time, industry was already paying heavy electricity bills of up to Rs 50 per unit, including surcharges and other taxes, he added.

Shocked by unprecedented fourth consecutive jump in petroleum product prices, he said move would worsen economic crisis, multiplying cost of production and intensifying miseries for trade and industry.

APBF Chairman Ibrahim Qureshi said that it has become almost impossible to run industries at such high cost. This was fourth consecutive hike in petroleum prices while, in tenure of caretaker government alone, petrol prices have been raised by almost Rs 60 per litre, which was going to create lot of problems for already ailing economy as production has been curtailed by many industrial units to great extent due to high cost.

He criticised caretaker government that it should have kept prices of petroleum unchanged due to falling landing cost of imported crude on account of persistent rise in rupee strength against dollar in last eight interbank sessions despite rising crude oil prices in world market.

Syed Maaz Mahmood said that it is fact that given the economic crisis being faced by country, government has to take harsh steps to generate required revenue for overcoming expenditures and fulfilling international commitments. However, instead of taking these steps back-to-back, government should devise some kind of an effective strategy to ensure some sigh of relief to masses and industry who will not be able to bear brunt caused by consecutive price hikes.

After keeping its policy rate unchanged at 22 percent by central bank, government increased petroleum prices by over Rs 26 per litre making it clear that inflation would be higher in September.

Published in The Daily National Courier, September, 25 2023

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