By Commerce Reporter
LAHORE: Strongly reacting to the government’s unprecedented increase in petroleum prices, Senior Vice President of Lahore Chamber of Commerce and Industry Tanveer A Sheikh on Friday said the historic hike has “crippled economic life” and pushed businesses to the brink of collapse.
In a sharply worded statement, Sheikh criticized the government for raising petrol prices to Rs458 per litre and diesel to Rs520, terming the decision “illogical, unjustified and destructive for industry and trade.” He said the earlier increase in high-octane prices had already burdened consumers, but the latest hike has multiplied the crisis across all sectors.
“The government should have reduced levies and taxes instead of imposing additional burden on an already struggling economy,” Sheikh said, adding that the ripple effects of fuel price escalation would severely hit raw material costs, freight charges, and industrial inputs.
He warned that essential sectors such as plastics, petroleum by-products, and textiles would face massive cost pressures. “Plastic dana, petroleum derivatives and transport costs will surge sharply, directly increasing the cost of production,” he noted.
Highlighting the textile sector, Sheikh said Pakistan was already struggling to remain competitive in global markets, and the latest fuel hike would further erode its position. “Cotton prices are expected to shoot up to Rs15,000–20,000 per maund, making exports unviable and damaging foreign exchange earnings,” he added.
The LCCI leader also criticized the State Bank of Pakistan’s restrictive policies, stating that the freezing of Letters of Credit (LCs) for essential imports has compounded the crisis. “Industries are unable to import raw materials due to SBP restrictions, and now with skyrocketing fuel prices, survival has become nearly impossible,” he said.
Sheikh emphasized the urgent need for policy correction, urging the government to introduce substitutes, rationalize duties, and reduce taxes to ease pressure on businesses and consumers. “Without immediate relief measures, inflation will spiral further, unemployment will rise, and economic activity will slow down drastically,” he warned.
Calling for a comprehensive review of economic policies, Sheikh stressed that sustainable solutions were needed to restore business confidence and protect Pakistan’s fragile industrial base.
