ISLAMABAD, APR 3: /DNA/ – Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), has expressed profound concerns and outright dismay over the staggering and unprecedented increase in petroleum prices announced by the federal government. He proposed that an emergency, temporary suspension of the Petroleum Development Levy (PDL) should be announced to provide immediate breathing room to the industrial sector – until the global petroleum supplies return back to normalcy.

Mr. Atif Ikram Sheikh stated that the business, industry and trade community warns that this colossal spike in the cost of doing business has escalated beyond a mere operational challenge; it now poses an existential threat to the national economy – triggering severe de-industrialization; paralyzing fragile supply chains and unleashing a devastating wave of hyperinflation across Pakistan.

FPCCI Chief pointed out that, with petrol prices surging by Rs 137.23 to reach an all-time historical high of Rs 458.40 per litre – representing a staggering 42.7% increase – and high-speed diesel (HSD) seeing an astronomical rise of Rs 184.49 to hit Rs 520.35 per litre – a 55% increase – the business community is bracing for catastrophic economic disruptions.

Mr. Atif Ikram Sheikh noted that if we account for the previous increase in petroleum prices in the country during March 2026, the cumulative increase works out to be 77% within a month – and, the government should have devised a better strategy through a much needed consultative process.

Mr. Atif Ikram Sheikh has explained the crippling effect this will have on the nation’s industrial output and export targets. While we acknowledge that the ongoing geopolitical crisis in the Middle East has sent global oil markets into a frenzy, passing on an increase of this magnitude directly to the consumers and the industrial sector overnight is completely unsustainable, he added.

President FPCCI maintained that a 55% hike in diesel prices will fundamentally paralyze our manufacturing sectors. Our flagship export industries are already struggling with high cost of doing business. With this latest shock, we are staring at a complete loss of export competitiveness on the global stage. International buyers will simply pivot to our regional competitors.

Mr. Saquib Fayyaz Magoon, SVP FPCCI, elaborated that the cascading impact of this price surge threatens to destabilize multiple critical sectors simultaneously. Firstly, textiles and manufacturing will face multiplied freight and transportation charges – which will drastically inflate production overheads – leading to inevitable factory closures and shifts reductions.

Mr. Saquib Fayyaz Magoon stressed that agriculture – with the harvesting season underway – can not manage the astronomical cost of diesel and will render the operation of tractors, tube wells and harvesters financially unviable for the average farmer, threatening national food security as the result.

Mr. Saquib Fayyaz Magoon said that small and medium enterprises (SMEs) will be hardest hit as they lack the financial buffers of large corporations. SMEs – the backbone of the economy – will face an immediate liquidity crisis as their operational costs will double overnight.

SVP FPCCI emphasized the devastating ripple effects on daily commodities – availability and prices both – as the diesel is the absolute lifeblood of our logistics; goods transport and supply chains. Pushing HSD past the Rs 520 mark means domestic freight charges will skyrocket instantly. This will directly translate to exorbitant price hikes for essential food items; medicines and raw materials.