Karachi: President FPCCI Irfan Iqbal Sheikh demanded government should announce reduction of 18-20 rupees per litre in prices of petroleum products as international oil prices are showing declining trend despite harrowing ongoing conflict and supply cuts announced by Saudi Arabia and Russia till December 2023.

He said international oil prices are now down to $ 81.30 per barrel and that is below 50-day moving average of $ 85.70.

He said this phenomenon categorically establishes fact that global economy is on downslide cumulatively and wars between Russia and Ukraine and Israel and Palestine are principle factors in development of this bleak economic scenario for world.

FPCCI firmly believes that policy rate can be reduced safely from 22 percent to 20 percent in view of core inflation at 18.50 percent recorded for month of November 2023. Prices of food and petroleum have nothing to do with policy rate and it should be based on core inflation, he said.

Muhammad Suleman Chawla SVP FPCCI apprised that exporters badly need breather in cost of production. Increase in electricity, gas and petroleum prices over last one year hampering business. This is high time government can offer respite to business community without compromising fiscal targets, he added.

Published in The Daily National Courier, November, 14 2023

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