The business community has criticised increase in oil prices and said that on one hand the government is inviting foreigners to invest in the country and on the other, increasing the cost of doing business. They said: "The high cost of doing business in Pakistan is one of the major obstacles in the expansion of export base of the country" and demanded immediate withdrawal of increase in oil prices.

They also demanded that the Karachi Electric Supply Corporation (KESC) should not be allowed to increase power tariff.

They noted that power rates in Karachi are higher than in the other parts of the country and allowing further increase in KESC tariff by 15 to 60 paisa per unit will render industrial products uncompetitive in local market as well.

"The business community has great potential to achieve any target set by the government provided the private sector is facilitated and necessary incentives are given to industrialists by the government." they said.

"If the government does not ensure the supply of energy at control rate, it will be very difficult for the industrialists here to produce quality goods at the competitive rate and our survival in the era of globalisation may be in peril."

They suggested that in the backdrop of continuously increasing petroleum prices, natural gas could be helpful in keeping the wheel of industry running.

They also recommended that the government should explore alternative source of energy enabling the exporters to compete at international markets.

Copyright Business Recorder, 2005