KARACHI (special crosspondent) – Mr. Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), has formally called upon the federal government to adopt a more pragmatic approach toward the rationalization of petroleum prices. Highlighting the impact on the national economy, he specifically focused on the pricing of high-speed diesel (HSD), noting that current costs represent a significant barrier to export competitiveness and have exacerbated the overall cost of doing business in Pakistan.

The Impact of High Diesel Costs

Mr. Atif Ikram Sheikh stated that the existing fuel pricing mechanism is creating a disproportionate inflationary effect on logistics, transportation, and agricultural supply chains. He emphasized that diesel serves as a critical input for the transport, agriculture, and manufacturing sectors, and its current pricing has reached levels that are economically unsustainable. This aligns with broader industry calls for reform, similar to efforts aimed at improving agricultural trade and investment through enhanced policy support.

Revenue Collection vs. Industrial Viability

The FPCCI President stressed that the government must pivot away from utilizing petroleum prices, specifically the petroleum development levy (PDL), as a primary tool for revenue generation. While global crude oil fluctuations remain a factor, Mr. Sheikh argued that excessive domestic taxation has placed an undue burden on Small and Medium Enterprises (SMEs) and large-scale manufacturers. He suggested that by reducing operational costs for tractors and tube-wells, the government could effectively stabilize domestic food prices.

Regional Export Competitiveness

Addressing the critical state of the export sector, Mr. Atif Ikram Sheikh pointed out that Pakistani exporters are currently at a severe disadvantage relative to regional competitors. Comparative data shows that fuel prices in Pakistan have significantly exceeded regional averages due to the impact of PDL. He noted that countries such as India, Bangladesh, and Vietnam have implemented more effective domestic energy pricing strategies, thereby protecting their industries from volatile fuel hikes. As noted in discussions regarding long-term economic recovery, maintaining competitive overheads is essential for preventing industrial closures. Mr. Sheikh reaffirmed that the FPCCI remains dedicated to collaborating with the government to foster industrial growth, enhance export capabilities, and stimulate job creation through business-friendly economic policies.