Islamabd
\nThe Pakistan Industrial and Traders Associations Front (PIAF) has sharply criticized the government\u2019s recent decision to raise petrol and diesel prices by over 21 percent, calling it \u201cunjustified\u201d and warning that it could intensify inflation, increase production costs, and undermine Pakistan\u2019s fragile export sector.
\nPIAF Chairman Faheemur Rehman Saigol, who also serves as President of the Lahore Chamber of Commerce and Industry, said the hike comes at a time when industries are already grappling with high input costs and shrinking margins.
\nSpeaking to reporters, Fahee Saigol noted that the government raised fuel prices while old oil stocks, purchased at lower prices, are still in reserve. \u201cThis burden could have been avoided entirely,\u201d he said. \u201cIf price adjustments are to be made, a proper review should have been conducted. Passing on costs now only hurts consumers and industries alike.\u201d
\nPIAF Vice Chairman Tahir Manzoor Chaudhary and Senior Vice Chairman Nasrullah Mughal echoed the chairman\u2019s concerns, highlighting the potential economic consequences of the hike. They warned that rising fuel costs would immediately increase inland freight charges, impacting the transportation of goods across the country.
\nHe noted that inland freight for shipments between Karachi and Central Punjab could surge by 25 to 30 percent, increasing the cost of textiles, Pakistan\u2019s largest export sector.
\nThe PIAF leadership stressed that higher energy costs would also push up inflation, adding to the financial strain on households and small businesses. Consumer prices, which have already risen to a 16-month high of 7 percent last month, are expected to climb further, analysts said. \u201cMiddle-class families and small enterprises are already struggling with daily expenses. This fuel price increase will directly hit their wallets and reduce purchasing power,\u201d said Chaudhary.
\nFaheem Saigol warned that the industrial sector could face additional challenges if gas supplies are disrupted. \u201cQatar has reduced gas production, and any shortage will affect manufacturing, particularly in energy-intensive sectors such as textiles and chemicals. This will not only raise costs domestically but may also slow down exports,\u201d he said.
\nThe PIAF officials also raised concerns about Pakistan\u2019s widening trade deficit. With the country importing petroleum products worth $16 billion last year, every spike in international oil prices increases the import bill significantly. \u201cA $5 rise in global oil prices adds nearly $1 billion to Pakistan\u2019s import costs. At a time when exports are already declining, this could put additional pressure on the current account and the rupee,\u201d Mughal explained.
\nThe association emphasized that sudden hikes in fuel prices could also affect investor confidence. Faheem Saigol said, \u201cIndustries need stability to plan production, manage costs, and export competitively. Unpredictable energy pricing undermines investment and creates uncertainty in the business environment.\u201d
\nPIAF has called on the government to adopt a more balanced and phased approach to energy pricing. They urged policymakers to ensure that price adjustments are linked to actual import costs and to provide relief measures for industries and vulnerable consumers. \u201cA strategic review should be conducted before implementing increases, and any adjustments should consider the timing of existing stock and international market fluctuations,\u201d Saigol recommended.
\nThe association also highlighted the potential impact on Pakistan Railways and domestic logistics. Freight charges have already been adjusted upward, with goods transportation rates increasing by 9 percent and passenger fares by 5 to 10 percent. PIAF said such adjustments, compounded with fuel hikes, will escalate the overall cost of doing business in Pakistan.
\nThe PIAF leadership stressed the need for dialogue between the government and industrial stakeholders to address energy pricing in a way that protects both the economy and consumers. \u201cWe are committed to supporting growth and exports, but these measures must be carefully calibrated. Otherwise, industries will bear the brunt, inflation will rise, and economic recovery will slow,\u201d Saigol said.<\/p>\n","protected":false},"excerpt":{"rendered":"
Islamabd The Pakistan Industrial and Traders Associations Front (PIAF) has sharply criticized the government\u2019s recent decision to raise petrol and diesel prices by over 21 percent, calling it \u201cunjustified\u201d and warning that it could intensify inflation, increase production costs, and undermine Pakistan\u2019s fragile export sector. PIAF Chairman Faheemur Rehman Saigol, who also serves as President …<\/p>\n","protected":false},"author":4,"featured_media":94776,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-94764","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/posts\/94764","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/comments?post=94764"}],"version-history":[{"count":1,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/posts\/94764\/revisions"}],"predecessor-version":[{"id":94784,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/posts\/94764\/revisions\/94784"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/media\/94776"}],"wp:attachment":[{"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/media?parent=94764"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/categories?post=94764"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/tags?post=94764"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}