ISLAMABAD, APR 4 /DNA/ – Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), has welcomed the Prime Minister’s decision to provide partial relief in petroleum prices through halving the petroleum development levy (PDL).

President FPCCI, however, maintained that the apex trade body urgently calls for the implementation of a safety net for the country’s export sectors – warning that high-speed diesel (HSD) prices and compounded operational costs continue to threaten Pakistan’s global competitiveness.

Mr. Atif Ikram Sheikh stated that, while the last night’s downward revision in petrol prices offers some breathing room to the public and the business community following a historic price shock, it is not enough to secure the nation’s macroeconomic stability. We appreciate the government’s intervention to pull petrol prices back down to Rs. 378 per liter. It shows a willingness to listen to the distress calls of the industry, he added

FPCCI Chief stressed that, with High-Speed Diesel remaining at an astronomical Rs. 520 per liter, our flagship export industries are still staring at a complete loss of competitiveness on the global stage. We desperately need a dedicated safety net for exporters to prevent widespread de-industrialization, he added.

Mr. Atif Ikram Sheikh has reiterated that there will be catastrophic ripple effects that prolonged high freight and logistics costs will have on export targets. Textile and manufacturing sectors are facing multiplied transportation charges that have drastically inflated production overheads. Without a targeted safety net, inevitable factory closures, shift reductions and unemployment will follow, he warned.

Mr. Saquib Fayyaz Magoon, SVP FPCCI, elaborated that Small and Medium Enterprises (SMEs) – which form the backbone of our export supply chain – lack the financial muscle of larger enterprises. They are facing an immediate liquidity crisis that a partial reduction in petrol alone cannot solve, he added.

Mr. Saquib Fayyaz Magoon pointed out that regional competitors such as India, Bangladesh, China and Vietnam have managed their energy crises with significantly lower domestic fuel price hikes – putting Pakistani exporters at a severe disadvantage.

Mr. Saquib Fayyaz Magoon added that, for industry to survive, the government must devise a strategic safety net. This should include a complete suspension of the Petroleum Development Levy (PDL) for export-oriented manufacturing and a fast-tracked transition to alternative energy sources. We cannot afford to erode our foreign exchange earnings at this critical juncture, he added.

FPCCI leadership concluded by urging an emergent, consultative dialogue with the Ministry of Finance, the Ministry of Commerce and the Ministry of Petroleum. The Federation stressed that protecting the export sector is not just an industrial priority; but, a matter of national economic security.