Karachi: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed a cautious welcome to the government's decision to reduce petroleum prices by halving the petroleum development levy. However, the FPCCI has urged the implementation of a safety net for export-oriented industries to address ongoing challenges posed by high-speed diesel prices and increasing operational costs, which threaten Pakistan's competitiveness in global markets.
According to Federation of Pakistan Chambers of Commerce and Industry, the President of FPCCI, Atif Ikram Sheikh, acknowledged the reduction in petrol prices, bringing them down to Rs. 378 per liter, as a positive step that provides temporary relief to the public and businesses. Nevertheless, he emphasized that this measure alone is insufficient to stabilize the country's macroeconomic environment. Sheikh highlighted the pressing need for a safety net for exporters, as the high cost of high-speed diesel, remaining at Rs. 520 per liter, continues to undermine the competitiveness of Pakistan's leading export industries.
Sheikh warned of the potential adverse effects on export targets if high freight and logistics costs persist. He noted that sectors such as textiles and manufacturing are struggling with increased transportation charges, which have significantly raised production costs. Without a targeted safety net, the FPCCI foresees potential factory closures, reduced shifts, and rising unemployment.
In addition, Saquib Fayyaz Magoon, Senior Vice President of FPCCI, highlighted the vulnerability of Small and Medium Enterprises (SMEs), which are critical to the export supply chain. These enterprises are facing a liquidity crisis that cannot be resolved by a partial reduction in petrol prices alone. Magoon pointed out that regional competitors like India, Bangladesh, China, and Vietnam have managed their energy challenges with less severe domestic fuel price increases, further disadvantaging Pakistani exporters.
Magoon called for the government to devise a strategic safety net, including the suspension of the Petroleum Development Levy for export-oriented manufacturing and a transition to alternative energy sources. The FPCCI leadership emphasized the need for an urgent consultative dialogue with key government ministries to protect the export sector, which they view as crucial not just for industry, but for national economic security.