MULTAN, Jan 2nd: The Business Community of Southern Punjab has bitterly criticised the federal government for increasing prices of petroleum products upto 7 percent.They termed the increase as the New Year gift of the federal government for the people, saying the move would directly affect the poverty-stricken masses in the country upto 7 percent.Transporters have increased not only tariff but also freight by 20 percent.“The Multan Chamber rejects POL price hike and logic for this initiative given by the Ministry of Finance” and questioned why the comparison for just POL prices with India, Bangladesh and Turkey is made. President of Multan Chamber of Commerce & Industry Malik Asrar Ahmed Awan said that Government should have to cut its taxes on petroleum products instead of increasing the prices which caused price hike of all commodities in the Market.Awan has expressed dismay over hike in POL prices and expressed apprehensions over ill impact on the national economy.MCCI President Malik pointed out that the exports of India, Bangladesh and Turkey have crossed $268.6 billion, $34.14 billion and $150.2 billion respectively while Pakistan is running with just around $21 billion. Industries in those countries are playing freely and enjoying the status of state-partner while Pakistani industrial sector is struggling for its survival”, he said. He said that logic has been given for POL price hike that oil prices in international market are soaring. It is true that oil prices in the international market are rising but it would be better if government cuts duties, taxes levied on petroleum products and reduces huge non-development expenditures, he added. The Multan Chamber has asked the government to avoid increasing POL prices as current economical condition does not allow such measures. The industrial sector would be immediate victim of the hike as it is one of the major raw materials of the industries, he said. The industrial production and movement of raw materials and trading goods would be more costly and reduce the competitiveness of Pakistani goods in the international market and put the government’s initiatives in reverse for boosting exports, he maintained. Senior Vice President Begum Romana Tanvir Sheikh, Vice President KhawajaMuhammad Farooq, Former Presidents of MCCI Farid Mughis Sheikh, Khawaja Jalaluddin Roomi,Shahid Nasim Khokhar, Khawaja Muhammad Usman have strongly condemned the recent increase in the petroleum prices from Rs4 to Rs6 per liter would directly affect poor people. They observed the downward trend in the prices of petroleum commodities, was witnessed over the past many months in regional countries, like India and Bangladesh, but he said the prices have gradually increased in Pakistan. Farid Mughis A Sheikh said that increase in petroleum price would also add to the complexities of the agriculture sector which is already in a bad state-of-affairs because of water scarcity and various other reasons. The increase in petroleum prices would increase the input cost of agriculture production as high speed diesel is being used in tractors, tube-wells, harvesters, thrashers and other agriculture machinery, he said.
