President of the Korangi Association of Trade and Industry (KATI), Muhammad Ikram Rajput, has strongly condemned the government’s steep increase in petroleum prices, terming it an “economic shock” that could push the country toward severe financial instability.
In a statement, Rajput said the hike of Rs137.24 per litre in petrol and Rs184.49 per litre in high-speed diesel was unprecedented and unacceptable. Following the increase, petrol prices have surged to Rs458.41 per litre, while high-speed diesel has reached Rs520.35 per litre, marking the highest levels in Pakistan’s history.
He noted that fuel prices in Pakistan are now significantly higher than in several neighbouring countries, including Sri Lanka, India, Bangladesh, Nepal, and Afghanistan, placing an additional burden on both consumers and businesses.
Rajput warned that the sharp increase would trigger a fresh wave of inflation, further eroding the purchasing power of the middle class and pushing many below the poverty line. He cautioned that rising energy costs could lead to industrial closures, a slowdown in economic activity, and capital flight, as investors may shift their investments abroad due to an increasingly unfavourable business environment.
He emphasised that higher fuel prices would directly impact transportation, logistics, and production costs, ultimately halting industrial operations and causing a surge in unemployment. The ripple effects, he added, would be felt across all segments of society.
The KATI president urged the government to reduce its own expenditures rather than pass the burden on to the public. He called for the elimination of unnecessary privileges, austerity measures, and strict financial discipline to stabilise the economy.
Demanding an immediate rollback of the price hike, Rajput warned that failure to reconsider the decision could compel the business community to adopt a strong Protest strategy. He appealed to the government to provide immediate relief to both the public and industry, and to avoid policy decisions that could push the economy toward collapse.
