MULTAN: The Multan Chamber of Commerce and Industry (MCCI) issued a grave warning on Thursday regarding a potential economic crisis following significant increases in petrol and electricity prices. MCCI President Mian Rashid Iqbal strongly opposed the government’s recent decisions to raise these essential costs, emphasizing their detrimental effects on the industrial sector.
President Iqbal criticized the Oil and Gas Regulatory Authority’s (OGRA) announcement of a Rs9.99 per liter hike in petrol prices and the National Electric Power Regulatory Authority’s (NEPRA) shocking 170% increase in electricity tariffs. He cautioned that such drastic measures could have severe economic repercussions, potentially jeopardizing the livelihoods of thousands of workers.
“These price hikes have already forced over 100 industries to shut down, causing a surge in unemployment and inflation,” stated Iqbal, underscoring the immediate impact of rising operational costs. He highlighted that exports have already declined from $19 billion to $16 billion due to increased costs, putting further strain on the economy.
The MCCI president expressed deep concern that the continued rise in electricity prices would further impair the competitiveness of Pakistani exports, pushing the country towards a more profound economic crisis. “The inflation caused by escalating petroleum prices will worsen living conditions for the public and destabilize the economy further,” he warned.
Despite the Prime Minister’s assurances of relief for industrial electricity rates, Mian Rashid Iqbal noted that these promises have been rendered meaningless by the government’s recent actions. He stressed that achieving economic growth targets would be extremely challenging under the current policy framework, leading to decreased exports, lower incomes, and reduced revenue collection.
In light of these challenges, President Iqbal urged the Prime Minister and the Federal Minister of Energy to take immediate action to lower electricity prices for industries. He emphasized that high production costs make Pakistani products less competitive on the global stage compared to those from neighboring countries like Bangladesh, Vietnam, and India, which enjoy significantly lower energy prices.
“The government must urgently develop a relief policy for the export industry to enhance income and boost exports,” Iqbal appealed. “Immediate action is needed to stabilize the economy and support the industrial sector.”
The MCCI president’s remarks reflect growing concerns among industrialists regarding the adverse effects of rising fuel and electricity costs on business operations and the overall economy. As the situation continues to evolve, industry stakeholders are calling for prompt government intervention to avert a deepening economic crisis and restore stability in the industrial sector.
With the potential for further shutdowns and rising unemployment, the need for effective policy measures to address the escalating costs and support the economy has never been more urgent.
