FPCCI urges urgent export safety net as diesel costs threaten competitiveness

ISLAMABAD: The Federation of Pakistan Chambers of Commerce & Industry (FPCCI) has called for an immediate safety net for the country’s export sectors, citing soaring High-Speed Diesel (HSD) prices of Rs520 per litre and mounting operational costs as threats to Pakistan’s global competitiveness.

FPCCI President Atif Ikram Sheikh welcomed the government’s recent move to partially reduce petrol prices to Rs378 per litre through a halving of the Petroleum Development Levy (PDL), describing it as a positive but insufficient measure to stabilize the economy and protect industry.

He warned that prolonged high fuel and logistics costs are creating a “catastrophic ripple effect” on export targets, particularly in the textile and manufacturing sectors, where inflated transportation charges are sharply increasing production overheads. Without a dedicated support mechanism, factories may face closures, shift reductions, and layoffs.

FPCCI Senior Vice President Saquib Fayyaz Magoon highlighted that Small and Medium Enterprises (SMEs)—which form the backbone of Pakistan’s export supply chain—are struggling with immediate liquidity crises that partial petrol relief alone cannot resolve. He stressed that regional competitors including India, Bangladesh, China, and Vietnam have managed domestic energy price pressures more effectively, leaving Pakistani exporters at a severe disadvantage in international markets.

To address the crisis, FPCCI leadership proposed a comprehensive safety net for exporters, recommending a complete suspension of the PDL for export-oriented manufacturing and a fast-tracked shift to alternative energy sources to preserve foreign exchange earnings.

The federation concluded by urging an urgent consultative dialogue with the Ministries of Finance, Commerce, and Petroleum, emphasizing that safeguarding the export sector is not just an industrial priority but a matter of national economic security. Web Desk