KARACHI: Business and industrial community has urged the Prime Minister Shehbaz Sharif and Minister for Petroleum Ali Pervaiz Malik to withdraw the government’s decision to introduce daily pricing of petroleum products, warning that the policy could prove disastrous for industry, trade and the broader economy.
They said that fuel pricing mechanisms were to be formulated through broad based consultation with all the stakeholders.
Expressing serious reservations over the government’s decision to introduce daily pricing of petroleum products, SITE Association of Industry President Abdul Rehman Fudda urged Prime Minister Shehbaz Sharif to immediately review and withdraw the policy, warning that it could trigger a fresh crisis for Pakistan’s industrial and export sectors.
He said the country’s manufacturing sector was already under immense pressure due to high electricity and gas tariffs, excessive taxation and steadily rising production costs.
Introducing daily revisions in petroleum prices, he said, would further deepen uncertainty for businesses, making long-term planning and cost management increasingly difficult.
“The two biggest challenges confronting Pakistan’s industrial sector are expensive energy and policy uncertainty,” he said.
“If manufacturers wake up every morning unsure of fuel prices and production costs, they cannot effectively price their products, manage inventories or make investment decisions.” SAI chief noted that export-oriented industries were particularly vulnerable because export contracts were typically finalized several months before delivery.
Continuous fluctuations in fuel prices during the production cycle, he said, would significantly increase manufacturing and logistics costs, making it difficult for Pakistani exporters to remain competitive in international markets.
He said domestic manufacturers also faced practical constraints, as they could not revise product prices on a daily basis to absorb rising input costs.
Appealing directly to Prime Minister Shehbaz Sharif, Fudda proposed that petroleum prices should be fixed at least on a monthly basis to provide businesses with a predictable operating environment.
If international oil price volatility created fiscal pressure, he suggested that the government temporarily adjust the petroleum levy rather than passing daily price fluctuations on to industry.
He expressed hope that the prime minister and relevant policymakers would take the concerns of the business community seriously and adopt a stable and predictable pricing mechanism to protect industrial activity, safeguard exports and preserve employment.
The Salt Manufacturers Association of Pakistan (SMAP) has appealed to Prime Minister Shehbaz Sharif to immediately reconsider the government’s decision to introduce daily pricing of petroleum products, warning that the policy could prove disastrous for industry, trade and the broader economy.
SMAP founder Chairman Ismail Suttar said the manufacturing sector was already struggling under the burden of high electricity and gas tariffs, elevated taxation and rising operational costs.
Introducing daily fluctuations in petroleum prices, he cautioned, would further escalate production costs, disrupt business planning and make it increasingly difficult for industries to remain operational.
“The industrial sector is already operating under severe financial pressure.
If fuel prices continue to change every day, production costs will become unpredictable, business confidence will erode and many industries may find it impossible to continue operations,” he said.
Ismail Suttar urged Prime Minister Shehbaz Sharif to withdraw the decision, arguing that while the government frequently spoke of promoting industrial growth and investment, policies that created uncertainty for businesses undermined those objectives.
He maintained that a thriving industrial sector was essential for economic stability and government revenue generation.
“If industries are forced to shut down due to unsustainable costs, the government’s own tax revenues will suffer.
Sustainable economic growth can only be achieved when businesses are allowed to operate in a stable and predictable environment,” he added.
Expressing concern over the wider economic implications, Suttar said daily revisions in petroleum prices would not only increase costs for manufacturers but would also trigger another wave of inflation, placing an additional burden....
