Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), has expressed profound concern and outright dismay over the staggering, unprecedented increase in petroleum prices announced by the federal government. He proposed that an emergency, temporary suspension of the Petroleum Development Levy (PDL) be announced to provide immediate breathing room for the industrial sector until global petroleum supplies return to normal.
Mr. Atif Ikram Sheikh stated that the business, indusry 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 amounts to 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 paralyse 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 destabilise multiple critical sectors simultaneously. Firstly, textiles and manufacturing will face higher freight and transportation costs, which will drastically inflate production overheads, leading to inevitable factory closures and shift reductions.
Mr Saquib Fayyaz Magoon stressed that agriculture – with the harvesting season underway – cannot manage the astronomical cost of diesel and will render the operation of tractors, tube wells and harvesters financially unviable for the average farmer, thereby threatening national food security.
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 emphasised the devastating ripple effects on daily commodities – availability and prices both – as diesel is the absolute lifeblood of our logistics, goods transport, and supply chains. Pushing HSD past the Rs 520 mark will instantly cause domestic freight charges to skyrocket. This will directly translate to exorbitant price hikes for essential food items, medicines, and raw materials.
Mr Saquib Fayyaz Magoon iterated that the targeted subsidies recently discussed by the government are administratively detrimental enough to bring any relief; historically proven to be inefficient and vastly insufficient to shield Pakistan’s core industrial base from this monumental economic shock.
FPCCI calls for an emergency dialogue with the Ministry of Finance and the Ministry of Petroleum. The Federation firmly warns that – without immediate remedial steps – the country risks severe socio-economic instability; mass bankruptcies and unprecedented job losses.
