Price hike will make industries shut down: FPCCI

The President of the FPCCI, AtifIkram Sheikh, has made a strong demand that the government immediately review its policy of perpetually raising energy prices.  In particular, the decision to raise the price of captive gas to Rs. 2,750/MMBtu, a 223% rise since January 2023, puts Pakistan’s industrial sectors in danger of completely collapsing.

Price hike will make industries shut down: FPCCI

According to Mr. AtifIkram Sheikh, rising production costs in all industrial sectors are a direct result of ballooning energy expenses, which forces companies to pass these costs on to customers. According to him, this leads to broad price rises, which makes customers’ already difficult financial situation worse after two years of unrelenting inflation.

Price hike will make industries shut down

The head of FPCCI emphasized that as a result, consumer demand is expected to decline even further, which would lead to a decrease in manufacturing activity. The ensuing inflation also eliminates the chance of interest rates falling in the near future, further undermining the private sector. He went on to say that this slump has terrible consequences for poverty and unemployment, which are currently at all-time highs and will rise further in the lack of immediate action.

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The government should reevaluate its energy pricing system comprehensively, Atif Ikram Sheikh advised, since industrial consumers’ electricity costs are more than 17 cents per kWh, twice as much as those in regional nations like Bangladesh and India.

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