The exports-oriented industries feared that any further price increase in utilities - gas, electricity and water - as an outcome of the International Monetary Fund bailout package would make them uncompetitive in world markets further widening the trade deficit.
This was the consensus of representatives of different export sectors while talking to this correspondent. Chairman Pakistan Apparel Forum (PAF) Javed Balvani said that cost of production would rise if government increases electricity and gas prices for the five export-oriented sectors.
"Cost of production is already high in Pakistan compared to our competitions including Bangladesh, India and Vietnam", said Balvani adding that with a further increase in electricity and gas prices, exports would be severely impacted and may lead to factory closures which will make thousands jobless.
Balvani urged the government to provide a level playing field for the exporters by not putting additional burden on them through raising utility prices.
Zubair Motiwala, Chairman Pakistan-Afghanistan Joint Chamber of Commerce and Industry (PAJCCI) concurred and stated that business will shutdown if the cost of doing business will further increase and hurt overall production.
He added that local production would not be able to compete in the market where imported goods will be cheaper. Motiwala said that many of our imports are from China where there is no inflation sourced to utilities; instead China provides subsidies and low tariffs on utilities.
He said Pakistani industry would not be able to survive in that case especially those manufacturers whose market is mainly domestic. He said factories are already operating at below capacity and one of the major reasons for the high cost of doing business in Pakistan is high tariffs and raw material imports becoming more expensive due to the rupee depreciation.