Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Vice President Ahsan Paracha has warned that the increase in gas prices poses a serious threat to the country’s exports, potentially leading to factory closures and increased unemployment. Paracha revealed that the government disregarded FPCCI’s request for a reduction in gas prices and instead increased them. He stated that this move will increase the cost of Pakistani goods, making them less competitive in the international market. He emphasized that the combined impact of rising gas and petroleum product prices, along with increasing living expenses, will cripple industrial production, leading to job losses.
Speaking to reporters at FPCCI, Paracha expressed the business community’s astonishment at the government’s decision to increase gas prices for businesses. He explained that the gas price hike will inevitably increase manufacturing costs, affecting their ability to fulfill export contracts. He predicted that this move will ultimately reduce exports, while the increase in petroleum product prices will further fuel inflation.
Paracha also highlighted the Federal Board of Revenue’s (FBR) current struggle to meet tax revenue targets. He warned that the gas price hike will put additional pressure on industries, further complicating the government’s efforts to achieve its tax collection goals. He urged the government to reconsider its stance and reduce the prices of both gas and petrol to lower production costs, boost exports, and increase the country’s foreign exchange reserves.