ISLAMABAD: United Business Group (UBG) of the Federation of Pakistan Chamber of Commerce and Industry on Tuesday hailing the decision of the government to reduce fuel prices said that it will help curtail inflation, cut down the cost of production and provide impetus to industry.
In a press statement, Chairman UBG Shahzad Ali Malik said that it’s a good decision of the government to pass on the impact of petroleum prices to the people and the continuation of the ban on luxury goods.
The reduced petroleum prices will lower transportation costs for businesses, particularly those heavily rely on fuel, such as logistics and shipping companies, he said adding that it will improve profit margins and potentially reduce the prices of goods and services, benefiting people.
He said petroleum prices have a significant influence on inflation. When petroleum prices decrease, it helps alleviate inflationary pressures, as fuel costs are often a major component of production and transportation costs.
He said this will lead to lower overall inflation rates and contribute to stable prices, he added.
He said reducing petroleum prices will also have a positive impact on the economy.
Reducing petroleum prices can have several impacts on the economy.
He urged the government to slash super tax and lower the slab of other taxes levied on Industries and the business community to speed up the slow-down economic growth and accelerate the commercial activities in the country which he added will help steer the country out of economic turmoil.
