FPCCI President Warns Inflation Will Skyrocket Due to Heavy Taxes, Electricity Prices

Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh has said that the inflation rate will exceed 22 percent in the current fiscal year due to the increase in tax rates and energy prices. In a statement, Sheikh said the government should reduce its expenses to provide relief to the masses. The burden has been transferred to the people and the industrialists by increasing the electricity and gas prices, he added. Electricity in Pakistan is more expensive than other countries in the region, the loans taken from commercial banks at high interest rates are affecting the economy and the government has to pay interest of Rs. 8,500 billion on loans from commercial banks this fiscal year, he said further. The IMF agreement is welcoming but the burden should not be put on the people. As a result of expensive energy, inflation will increase due to the increase in production cost.  Inflation has already increased in the fiscal year that started from July 1. The government has set an inflation target of 12 percent for the current fiscal year but inflation will exceed 22 percent, he warned.