FPCCI Urges Immediate Measures to Hedge Pakistan's Trade and Economy Against Global Oil Shocks Demands Targeted Safety Nets and Suspension of PDL for Export-Oriented Industries Atif Ikram Sheikh, President FPCCI

Karachi: Mr. Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce
& Industry (FPCCI), has expressed grave concerns over the mounting pressure of volatile global
oil markets on Pakistan’s macroeconomic stability. He warned that successive international oil
shocks – compounded by high domestic levies – are crippling the country's export
competitiveness, widening the trade deficit, and threatening widespread industrial closures

Mr. Atif Ikram Sheikh emphasized that with the prices of high-speed diesel (HSD) and furnace
oil significantly inflating inland logistics, supply chains, cost of electricity generation, and
manufacturing overheads, the country's flagship export sectors are rapidly losing their footing
against regional competitors.

FPCCI Chief explained that the country urgently needs a dedicated, strategic safety net for
exporters to prevent widespread de-industrialization. Passing on the full brunt of global oil price
escalations directly to the industrial sector will be completely unsustainable. He noted that the
ripple effects of exorbitant freight and transportation costs are eroding the narrow profit margins
that exporters rely on to secure international orders.

Mr. Atif Ilram Sheikh maintained that to successfully hedge the economy and industrial sector
against these external shocks, FPCCI has proposed a multi-pronged approach. Foremost, the
trade body demands an immediate and suspension of the Petroleum Development Levy (PDL)
for export-oriented manufacturing. This targeted safety net is essential to provide a critical
financial buffer and preserve the country's foreign exchange earnings.

Furthermore, President FPCCI called for a fast-tracked national transition towards alternative
and renewable energy sources. In addition to fuel-specific interventions, the FPCCI leadership
stressed the absolute necessity of rationalizing overall energy tariffs. Bringing electricity and gas
tariffs at par with regional competitors, such as Bangladesh, Vietnam, and India, is crucial, as
these nations have successfully utilized strategic mechanisms to shield their core industrial bases
from massive economic shocks.

To complement these efforts and ease the ongoing liquidity crisis, Mr. Atif Ikram Sheikh also
urged an aggressive reduction of the central bank's exceptionally high policy rate to provide
affordable working capital for industrial production.

Mr. Atif Ikram Sheikh highlighted that Small and Medium Enterprises (SMEs) – the backbone of
the export supply chain – lack the financial muscle of larger corporations and will be the hardest
hit. He cautioned that SMEs are facing an immediate liquidity crisis as their operational costs
surge sharply. Without targeted intervention, inevitable factory closures, shift reductions, and
mass unemployment will follow.

Brig Iftikhar Opel, SI (M), Retd.

Secretary General