PIAF wants strict measures to see the impact of the fall in oil prices in all sectors

ISLAMABAD, JUL 17 /DNA/ — The Pakistan Industrial & Traders Associations Front (PIAF) has observed that the impact of falling oil prices is also expected to be seen on other commodities, including oil tariffs. electricity, as inflation continues to damage trade and industry. on an annualized basis at 33.16%.

PIAF President Faheem Ur Rehman Saigol in a joint statement with Senior Vice President Haroon Shafique Chaudhary and Vice President Raja Adeel Ashfaq said cutting fuel prices is a good decision but government should now show its management and administrative powers to implement this relief measure in other sectors as well.

Faheem Saigol said most of the electricity is generated by thermal sources, so the drop in fuel prices should also be seen as a drop in energy tariffs, as their cost has been reduced. In addition, transportation tariffs and tariffs for other products should also be reduced accordingly by decision of district and provincial authorities, he added.

The President of PIAF said that industries need low-cost energy to reduce their production costs and maintain the competitiveness of their products in the international market.

Citing the latest data released by the Pakistan Bureau of Statistics (PBS), he said the year-on-year increase in the Sensitive Price Indicator (SPI) was due to soaring diesel prices ( 141.46%), gasoline (119.61%), onions (89.33%), masoor legumes (88.6%), vegetable ghee 1 kg (78.92%), mustard oil (75 .72%), cooking oil 5 liters (73.01%), vegetable ghee 2.5 kg (72.44%), laundry soap (59.93%). percent), chicken (52.61 percent), sponge chappal gents (52.21 percent), legumes (51.14 percent), garlic (40.54 percent), LPG (39.95 percent) and mashed pulses (31.01 percent).

He said weekly inflation was stable but that trend would depend on adjustments in energy prices.

The government reduced oil prices, which would reduce inflation. However, likely adjustments in electricity and gas prices could push the index higher, he said. He warned that the CPI reading had yet to peak, which stood at 21.3% in June. It should soon reach 24 to 25%.

The June CPI figures depict the tough days currently facing the most vulnerable segments of the population. People have been abuzz with the high cost of commodities, especially fuels and electricity, which make up a large percentage of the SPI basket.

He said Pakistan’s exports cannot compete with China, Bangladesh and India where electricity tariffs were 7 to 9 cents, as the country’s exports could face a major setback these days due to the high cost of electricity, which has become a major stumbling block in the industry. development and stimulate exports.

He said that fuel and electricity are considered the lifeline of any economy and play a pivotal role in the socio-economic development of a country.

He observed that the government, under the current circumstances, should reduce the price of electricity along with the reduction in the price of petroleum products to further reduce the cost of doing business and promote industrial activities.

The Senior Vice President of PIAF said that business activities are already in decline and in this situation, the government should take serious measures to reduce the cost of doing business, as the recent increase in electricity tariffs will increase further. the production cost.

He observed that the burden of soaring oil prices in the international market is immediately shifted to the masses by the government, but the price reduction process is still very slow, he noted.

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