FPCCI urges govt to rationalise petroleum prices

Atif Ikram Sheikh, president of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), has called on the federal government to take a more practical stance on rationalising petroleum prices, with high-speed diesel (HSD) as the main focus. Business Recorder reported that he linked the step to easing the steep cost of doing business in Pakistan. He said the current fuel pricing system is pushing up logistics, transport and agricultural supply chain costs nationwide.

Diesel, in his view, is vital to transport, farming and factories, and the knock-on inflation from dearer diesel is severe. He argued that the state should not rely on fuel as a main source of revenue through the petroleum development levy (PDL), since this weakens the competitiveness of exporters. He also stressed that economic growth cannot happen without support for the business community.

Sheikh compared Pakistan with India, Bangladesh and Vietnam, saying fuel prices here have risen above regional averages mainly because of the PDL. He warned that manufacturers could face closures and lose global market share without a cheaper cost base. Sheikh asked the Ministries of Finance and Energy to look again at taxes on petroleum products and pass as much relief as possible to industry, while the FPCCI said it will work with the government on business-friendly policies.