PESHAWAR  – Acting President FPCCI Zubair Ali Khan has rejected unnecessary increase in oil price and urged the government to withdraw the current rise in oil prices.

In a press release issued by the head office of FPCCI, acting president FPCCI further stated that rise in oil prices would not only create inflation, it would also impact negatively on trade and industry.

He said, “unfortunately, our country is already facing a crisis in term of closure of industries due to bad law and order situation and shortage of gas and electricity, resulting flight of capital and massive unemployment and decline in government revenue.”

The continuous rising of oil price is unfavorable towards the sustainability of economy, as it severely affects the industrial sector growth. He added that our manufacturing sector grew by 2 to 3 percent in last two years, whereas it used to grow 14 to 15 percent in 2004 and 2005. He further stated that POL prices have been revised upward three times in a month, and its prices have been increased 23 percent in the last two months.

He further stated that petroleum prices not only reduce the foreign direct investment, it also shifted the domestic investment to other countries, which increased the unemployment in the country and rising budget deficit to 8.5 percent of GDP. He said it is high time that government should give relief to industries of the countries especially Khyber Pakhtunkhwa and FATA industries, but government increased the crisis of industries.

He said, the rising of oil price also reduces the competitiveness of country and creates inflation in the country. Reduction of interest rate by 150 basis points is a good measure of State Bank of Pakistan, but rise of oil price don’t allow us to make new investment in the country. Without investment in manufacturing sector, the growth and development of Pakistan is not possible.

In world, investment in industries is always considered as a real investment, which generates economic growth, employment and improve the standard of living of people. He said that in the current time there is a dire need that government should concentrate on inflation, unemployment and bad law and order situation.