LAHORE - The All Pakistan Business Forum on Saturday urged the government to transfer the whole benefit of reduction in crude oil prices in the international market to the industry.
“The slight cut in petroleum prices is not a reflection of the huge drop of more than 50% oil price in the international market,” stated APBF President Ibrahim Qureshi.
As the OGRA has proposed around Rs.7 slash in petroleum prices at the conclusion of the current month, the APBF leader asked the government to announce reduction of Rs.15-20 per liter to make it in line with the international prices, asking the government to refrain from enhancing GST on petroleum products. The government should also announce cut in power tariff in line with reduction in oil prices as around 70 per cent of electricity is generated through oil. He said major commodities and services are relatively more sensitive to changes in oil prices.
It has been the practice that the government focuses on increasing the GST on POL products to maintain its revenue collection while the consumers are deprived of this benefit.
“The APBF has been continuously urging the government for broadening of tax net and avoiding the increase in indirect taxes in general and on oil products in particular. Cost of bank borrowing still hinders new business opportunities. The economic managers may be making tall claims, but the current situation is far from satisfactory for a nation with per capita income of $1370 and a growing gap between the rich and the poor.”
Ibrahim Qureshi said that for our economic managers this is a great opportunity as lower oil bill will give them a much-needed sigh of relief as falling oil prices ease pressure on balance of payment position. On an average, annual price fall of 10 dollars reduces oil bill by nearly $1.35 billion or by $110 million.
The APBF President demanded of the government that price of crude oil in the international market has come down to around $45 per barrel but policy makers are reluctant to pass on it to the lower level, which is a sheer injustice. He said that industry is still suffering and paying heavy cost of electricity and transport fares. “If the fuel would be heavily taxed the entire economy would suffer and the same is happening in Pakistan,” he added.
He said that it is not the industrial sector alone but the agriculture sector is also suffering badly because of high prices of petroleum products.
Ibrahim Qureshi said that the lowering of oil prices will also lead to boost the industrial production and competitiveness. He said this step may also reduce the cost of energy which will helpful to the government to control over the present energy crises in the country. He stated that the declining trend of oil prices will not only cover POL products but also cover more than 100 byproducts, including plastic goods, rayon, Synthetics, fiber, nylon, Vaseline, glycerin, PTA, PSF and many pharmaceutical products.