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Islamabad, In a recent meeting of the Islamabad Chamber of Commerce and Industry (ICCI) Executive Body, concerns were raised over the government’s substantial hike in gas prices. Ahsan Zafar Bakhtawari, President of the ICCI, voiced fears that these increases would escalate inflation rates, negatively impact industries, and potentially lead to closures across the nation.
According to Islamabad Chamber of Commerce and Industry (ICCI), Bakhtawari highlighted that Pakistan’s economy is currently in a fragile state, making it imperative for the government to offer affordable energy tariffs to bolster economic recovery. He pointed out that, contrary to facilitating businesses, escalating electricity and gas tariffs have intensified the cost challenges for businesses. These increases also risk making Pakistani exports less competitive in global markets. The President criticized the government’s strategy of passing the financial shortcomings and inefficiencies of electricity and gas companies onto end consumers through heightened tariffs. Bakhtawari emphasized that the government should prioritize improving the operational efficiencies of these companies.
Bakhtawari also drew attention to previous public demonstrations in August, prompted by unjustified hikes in electricity prices. He cautioned that the recent surge in gas tariffs could further strain citizens’ living conditions and dampen business and investment prospects in Pakistan. In response, he appealed to the government to reevaluate the gas price increase to prevent further complications for the general public and businesses.
Faad Waheed, the Senior Vice President of the ICCI, noted that gas is a pivotal component for numerous industrial operations. He warned that the escalated gas prices could lead to widespread industrial shutdowns, thereby exacerbating economic vulnerabilities. Waheed expressed the sentiment that, for economic betterment, Pakistan needs to champion industrialization. Yet, current decisions appear to be steering the nation towards deindustrialization, which could significantly harm the economy.
Adding to the concerns, Engr. Azhar ul Islam Zafar, Vice President of the ICCI, mentioned that Pakistan’s electricity and gas prices are among the highest in the region. This has rendered the private sector’s competitive stance in international markets challenging. Zafar urged the government to engage with stakeholders in order to revise and recalibrate electricity and gas prices, ensuring affordability for all consumers.
The post ICCI Warns of Economic Impact Following Drastic Gas Price Increase appeared first on Pakistan Business News.