INCREASE IN PETROLEUM PRICES OPPOSED BY PTA
Karachi : 1st April, 2011
Mr. Khurshid Alam, Chairman, Pakistan Tanners Association (Central) has strongly criticized the decision of the Government for increasing oil prices upto 13% to control the budget deficit which is not justified and it will ultimately damage the cause of invigorating industrialisation and boosting exports.
He said that after the increase price of Petrol stands at Rs.83.56 per litre jumps by 9.1%, HSD at Rs.92.89 per litre by 7.9% and LDO at Rs.78.98 per litre by 13% it will bring a new wave of price hike in the country. He further said that the decision to increase petroleum prices against the interest of the general public and the leather industry, in particular it will certainly detrimental to the highly value added leather industry which is the backbone of the exporting industry.
The export of leather sector industry is facing continuous decline by 29% to US$ 867 Million from US$ 1.220 Billion in its export since 2007-08 while the power and gas tariff as well as petroleum products were already on the frequent increase. Rapid raise in the prices of Petroleum products would have a very negative impact on the whole leather industry which is already passing through extreme crisis as the power & gas load shedding has crippled this continuous processing industry which is engaged in earning sizeable foreign exchange for the country.
Intermittent increase in petroleum prices is causing mayhem as the leather manufacturers & exporters are unable to continue their production activities and are failing to comply with foreign orders on time which is also a great loss to the national exchequer.
Khurshid Alam, Chairman, PTA appeals to the Government to take stock of the present critical situation and withdraw this un-business friendly decision immediately to save the leather industry from further collapse. It is the need of hour to give top priority on this matter of high significance to save the exporters of leather industry from colossal loss of business.