Islamabad, September 01, 2012 (PPI-OT): Acting President FPCCI Mr. Zubair Ali Khan rejected an unnecessary increase in oil price and urged government to withdraw the current rise in oil prices. Three times increase in oil prices only in the August reflects the government as failure of its wrong based on anti-people friendly.
In a press release issued by the Head office of FPCCI, Acting President FPCCI further stated that rise in oil prices would not only create inflation, it would also impact negatively on trade and industry. He said, “unfortunately, our country is already facing a crisis in term of closure of industries due to bad law and order situation and shortage of gas and electricity, resulting flight of capital and massive unemployment and decline in government revenue.”
The continuous rising of oil price is unfavorable towards the sustainability of economy, as it severely affect the industrial sector growth. He added that our manufacturing sector grew by 2 to 3 percent in last two years, whereas it used to grow 14 to 15 percent in 2004 and 2005. He further stated that POL prices have been revised upward three times in a month, and its prices have been increased to 23 percent rise in the last two months.
He further stated that petroleum prices not only reduce the foreign direct investment, it also shifted the domestic investment to other countries, which increased the unemployment in the country and rising budget deficit to 8.5 percent of GDP, which has also indicate the alarming situation for the government. He said, it is high time that government should give relief to industries of the countries specially Khyber Pakhtunkhwa and FATA industries, but government increased the crisis of industries.
He said, the rising of oil price also reduces the competitiveness of country and creates inflation in the country, which Pakistan already faces in double digit since 2008. Reduction of interest rate by 150 basis points is a good measure of State Bank of Pakistan, but rise of oil price don’t allow us to make new investment in the country. Without investment in manufacturing sector, the growth and development of Pakistan is not possible. In world, investment in industries always consider as a real investment, which generate economic growth, employment and improve the standard of living of people.
Acting President FPCCI said that, in the current time there is a dire need that government should concentrate on inflation, unemployment and bad law and order situation, but our government focus on rising of oil price. FPCCI urged the government to withdraw this rise of oil price and fixed it for medium to long term to create economic stability in country.
For more information, contact:
Syed Masood Alam Rizvi
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
B-1, Federation House, Main Clifton Road,
Tel: 0092-21-35873691, 93-94
Fax: +9221 3587 4332