Cost of Doing Business Swiftly Transfer Relief in International Oil Prices & Rupee Appreciation Irfan Iqbal Sheikh

Mr. Irfan Iqbal Sheikh, President FPCCI, has demanded that the downward spiral in international oil prices and continuous appreciation of Pak Rupee over the past couple of weeks should be transferred to the end consumers in full with immediate effect. This is the only swift measure that the government of Pakistan can take to provide some relief to the business, industrial and trade community to reduce their cost of doing business to some extent, he added.

FPCCI Chief has noted with a sigh of relief that rupee has appreciated by 12 percent from July 28, 2022 and there are strong indications that after the release of impending IMF tranche, the rupee can post another 5 percent appreciation.

Mr. Irfan Iqbal Sheikh elaborated that the international oil prices have been declining persistently over the course of past two months on the back of cyclically higher prices and recessionary global economic outlook. He said that cumulative effects of 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 24 percent on a MoM basis and increase in 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 labor-intensive sectors have also taken a hit like, i.e. textile exports have declined 13 percent in July 2022 and food exports by 22 percent.

Mr. 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, oil price has come down to $92.78 per barrel and the relief must be transferred immediately and in full.