President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Irfan Iqbal Sheikh has called for the full transfer of the recent appreciation of the Pakistani Rupee and the subsequent decrease in oil costs to be passed on to consumers as soon as possible. He continued by saying that this was the only quick action the Pakistani government could do to help the commercial, industrial, and commercial sectors lower their costs of doing business.
FPCCI Chief has noted with a sigh of relief that the rupee has appreciated by 12pc from July 28, 2022, and there are strong indications that after the release of the impending IMF tranche, the rupee can post another 5pc appreciation.
Irfan Iqbal Sheikh elaborated that the international oil prices have been declining persistently over the course of the past two months on the back of cyclically higher prices and a recessionary global economic outlook. He said that the cumulative effects of the appreciating rupee and declining oil prices are no less than a blessing as the government can capitalize on these factors to provide interim relief to the masses and the business community alike.
FPCCI president reiterated that the government should be cognizant of the fact that Pakistan’s exports have declined by an alarming 24pc on a MoM basis and the increase in the cost of doing business is the most critical factors that have threatened the exports and foreign exchange earnings of Pakistan. He also emphasized that the exports from the labour-intensive sectors have also taken a hit, i.e., textile exports declined 13pc in July 2022 and food exports by 22pc.
Irfan Iqbal Sheikh explained that international oil prices have fallen to the pre-February 2022 level when the Russia-Ukraine war started and pushed the international oil prices to $139.13 per barrel on March 7, 2022. Now, the oil price has come down to $92.78 per barrel and the relief must be transferred immediately and in full.