Gas and Petroleum Price Hike Threatens Pakistan’s Export Growth

Karachi: The Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Amaan Pracha, has raised concerns over the government’s recent increase in gas and petroleum prices, warning that it will adversely affect the country’s export sector.

Speaking to the media, Mr. Pracha emphasized that the hike in energy costs will lead to higher industrial production expenses, which may result in factory closures and increased unemployment. He highlighted the potential decline in exports as Pakistan becomes less competitive in the regional market.

The FPCCI has previously requested a reduction in gas prices, but the government’s move to raise them has sparked surprise and concern among the business community. Mr. Pracha underscored the challenge industries will face in fulfilling export orders due to escalating production costs, which could hinder rather than help export growth.

Additionally, the rise in petroleum product prices is expected to further drive inflation, compounding the economic challenges facing the country. Mr. Pracha pointed out that the Federal Board of Revenue (FBR) has already struggled to meet its tax collection targets, and the increased energy costs will exacerbate these difficulties.

Mr. Pracha urged the government to reconsider its decision and lower gas and petroleum prices to help reduce production costs, thereby supporting export growth and securing valuable foreign exchange for the nation.