The head of a prominent industrial association today fiercely condemned the government”s recent steep increase in petroleum prices, labelling it an ‘economic shock’ that threatens to push the nation towards severe financial instability and trigger widespread industrial closures.
In a statement, Korangi Association of Trade and Industry (KATI) President Muhammad Ikram Rajput described the unprecedented increases-which have pushed petrol to Rs458.41 and high-speed diesel to Rs520.35 per litre-as unacceptable and the highest in the country”s history.
Rajput highlighted that fuel costs in Pakistan now substantially exceed those in neighbouring countries such as India, Sri Lanka, Bangladesh, Nepal, and Afghanistan, compounding the financial strain on consumers and commercial enterprises.
The KATI president warned that the drastic price adjustment will inevitably fuel a new wave of inflation, diminishing the purchasing power of the middle class and forcing more citizens below the poverty line.
He cautioned that soaring energy expenses could precipitate widespread industrial shutdowns, a contraction in economic activity, and capital flight, as investors might seek more favourable business environments abroad.
The increase in fuel prices will directly inflate transportation, logistics, and production overheads, which could halt industrial operations and result in a significant rise in unemployment, Rajput explained, noting the ripple effects would be felt across all segments of society.
Instead of transferring the financial burden to the populace, Rajput urged the government to curtail its own expenditures, implement austerity measures, eliminate non-essential privileges, and enforce strict financial discipline to stabilise the economy.
Demanding an immediate reversal of the price hike, the KATI president warned that the business community may be compelled to adopt a ‘strong Protest strategy’ if the decision is not reconsidered. He appealed for urgent relief for both the public and industry to avert policies that could lead the economy towards collapse.