The Biz Update One of Pakistan's Most Reliable Business News Website
Related Articles
KARACHI, September 8,2026 : President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) Atif Ikram Sheikh has urged the government to take immediate measures to protect Pakistan’s economy and export sector from the impact of volatile global oil prices.
He warned that repeated oil price shocks, combined with high domestic levies, are putting pressure on Pakistan’s economic stability, export competitiveness and industrial activity.
Atif Ikram Sheikh said rising prices of high-speed diesel (HSD) and furnace oil were increasing transportation costs, disrupting supply chains and raising electricity generation and manufacturing expenses.
He said these higher costs were weakening Pakistan’s major export sectors and making it harder for local manufacturers to compete with regional economies.
The FPCCI president called for a targeted safety net for exporters to prevent further industrial decline. He said passing the full impact of international oil price increases to industries was not sustainable.
According to him, higher freight and transportation costs are also reducing the already narrow profit margins of exporters. This could make it difficult for Pakistani companies to secure new international orders.
FPCCI has proposed a multi-pronged strategy to protect the industrial and export sectors from external oil shocks.
The business body has called for the immediate suspension of the Petroleum Development Levy (PDL) on export-oriented manufacturing. It said the measure would provide temporary financial relief to industries and help protect Pakistan’s foreign exchange earnings.
Sheikh also urged the government to accelerate the transition towards alternative and renewable energy sources. He said Pakistan must reduce its dependence on expensive fossil fuels to strengthen long-term economic resilience.
He further called for rationalization of electricity and gas tariffs. According to him, Pakistan needs competitive energy prices comparable with regional competitors such as Bangladesh, Vietnam and India.
The FPCCI chief said competitive energy tariffs were essential for protecting domestic industries and improving Pakistan’s position in international markets.
To address the liquidity pressures facing businesses, Sheikh also called for a significant reduction in the central bank’s policy rate. He said lower borrowing costs would help industries access affordable working capital and maintain production.
He particularly highlighted the challenges facing small and medium-sized enterprises (SMEs), which play a major role in Pakistan’s export supply chain.
According to Sheikh, SMEs have fewer financial resources than large corporations and are therefore more vulnerable to rising operating costs.
He warned that without targeted government support, businesses could be forced to reduce production shifts or close factories altogether. Such a situation could lead to significant job losses and further weaken industrial activity.
The FPCCI president stressed that protecting export-oriented industries should remain a priority as Pakistan seeks to increase exports, preserve foreign exchange earnings and strengthen economic stability.
