The announcement of increase in electricity and petroleum products prices on the new-year eve is unfortunate and it shows that the overburdened masses will have to brave more shocks amid runaway inflation during 2020, a business leader said.
The decision will hit masses and result in a multiplier effect on almost all the business activities resulting in a price hike, he added. The cost of transportation will hit masses and further escalate the cost of doing business resulting in problems for the masses and the business community, said Shahid Rasheed Butt, former President ICCI.
He said that the price of all the food and kitchen items, construction material, fertilizers, and imported goods, etc, would be dearer as these goods are supplied across the country through diesel-based vehicles.
Shahid Rasheed Butt said that the move is not a not good sign for the economy and it contradicts the claim of achievement of economic stability during the last one year.
The adverse measures like revision in energy prices are taken without even consulting the business community and these moves are adding to inflation, unemployment and anxiety among masses, he noted.
He said that increased price of fuel and electricity would further increase the cost of doing business and discourage investment and exports which are already below the satisfactory level.
The increase in petrol and diesel prices will increase inflation as almost all sectors are affected by it, therefore, the decision should be taken hack, he demanded.