KARACHI: The business community has appreciated the government's decision of reducing petroleum prices saying it will help cut the cost of doing business.
It will also help in reducing the cost of electricity generation through captive power plants and standby generators used by the industry for trading-off power shortages.
This was stated by Eng. M.A. Jabbar, former Vice President Federation of Pakistan Chambers of Commerce and Industry (FPCCI), former Chairman of SITE Association of Industry and the In-charge WTO Cell at FPCCI, while talking to APP.
The leading industrialist and exporter said that with reduction in oil price, the country's imports and exports volume of over sixty billion dollars will experience a positive impact.
The cost of logistics and transportation used in handling the import and export cargo will also come down. This will provide further space for improving the cost competitiveness of export merchandise.
He said that the reduction in cost of import products will have direct and indirect spill-over effect for consumers as they will get low price items.
Engr. Jabbar said that the reduction of fuel prices will have a positive impact on agriculture economy which uses mechanised farming and diesel operated tubewells as well as using fuel for meeting electricity shortages.
He noted that over all, the people will have better purchasing power due to direct and indirect effects of cut in petroleum price.
The In-charge WTO Cell at FPCCI recommended that the Government should take reviews for changing fuel oil prices based on price changes in the international fuel market.
He said that the political governments should take initiatives to satisfy the general public to strengthen their vote bank.
Former vice-chairman, Korangi Association of Trade and Industry (KATI) Shahid Jawed Qureshi also welcomed the reduction in fuel price and described it as encouraging for trade and industry.
However, he suggested, the petroleum prices should be fixed to match with international oil market prices and these should be fixed for at least three months for smooth and stable operation of industry especially the export industry. "Sudden ups and downs in fuel price cause disturbance in meeting export orders," he remarked.
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