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KARACHI, September 8, 2026: Industrialists in Karachi’s SITE industrial area have warned that rising fuel prices are putting industries, exports and jobs at risk.
The industrial sector is already facing high energy costs and heavy taxes. Another increase in petroleum prices could further raise production costs and make it harder for businesses to remain competitive.
President of the SITE Association of Industry (SAI) Abdul Rehman Fudda urged the government to introduce a 15-day petroleum pricing cycle instead of changing fuel prices daily.
He said stable fuel prices would help industries and exporters calculate production costs. It would also allow businesses to set prices and sign commercial agreements with greater confidence.
The SAI chief said business and industrial groups had repeatedly asked the government to reduce petroleum prices. They had also called for a review of the daily pricing system.
However, the government increased diesel and petrol prices again. Diesel went up by Rs3.72, while petrol increased by Rs12.90. The latest increases have added further pressure on businesses and industrial units.
Fudda questioned whether the government wanted industries to remain operational and protect jobs. He said frequent price increases could instead force industrialists to consider shutting down their plants.
He also criticized the policy at a time when the government is seeking to increase exports, attract investment and improve the ease of doing business.
According to Fudda, Pakistani manufacturers and exporters are already facing strong competition from regional markets. High production costs are making it difficult for them to compete.
Moreover, unpredictable fuel prices make business planning harder. Companies struggle to calculate production costs, prepare quotations and sign new export and commercial contracts.
Small and medium-sized enterprises (SMEs) are also facing growing financial pressure. At the same time, large-scale manufacturing units are struggling to maintain their competitiveness.
Fudda warned that lower industrial activity could also reduce employment opportunities. Young people could face greater difficulties finding jobs, which may worsen existing social and economic problems.
Industries are already dealing with high electricity and gas prices. They also face water shortages, law-and-order concerns and heavy taxation.
In this situation, Fudda said attracting new and foreign investment would remain difficult unless existing industries were first stabilized.
He urged the government to make the uninterrupted operation of existing industries a priority. A strong industrial sector, he said, is essential for creating jobs, increasing exports and supporting economic growth.
Fudda further warned that if existing industries are forced to close, efforts to attract new investment and increase exports will become less effective.
