FPCCI member terms austerity ‘economic curfew’

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has condemned the government's spending cuts as an “economic curfew” on ordinary citizens, according to Dawn. Adeel Siddiqui, an FPCCI Executive Committee member, said on Saturday that the measures include halving petrol for official cars, banning new vehicle and durable goods purchases, and curbing official travel and government-funded seminars. Early closures for markets and wedding halls are also included.

Siddiqui said such steps look attractive on television but have little to do with real fuel use. Petrol sells for Rs391 a litre and diesel for Rs425, yet the state takes in Rs105.65 per litre in taxes and levies. Early market closures would save no fuel, he argued, since trucks and supply chains run around the clock. Wedding halls run on diesel, so 10pm closures would not cut petrol use.

He called the 5 per cent cut in non-essential spending symbolic, as Rs1,071 billion of federal outlays stays untouched. He also cited large state-owned enterprise losses, including Rs295bn at the National Highway Authority and Rs60bn at Pakistan Railways. Siddiqui demanded a 10 per cent cut in the Rs2,078bn support for loss-making SOEs, which would save Rs200bn, and the scrapping or sharp reduction of the petroleum levy of Rs105 per litre. Commercial transporters should receive a targeted fuel subsidy, he added, and daily fuel pricing should stop.