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WEEKLY
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| High oil price takes its toll of business |
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Thursday, February 26, 2009
By our correspondent
ISLAMABAD: High oil prices have affected business and economic activities in the country by substantially increasing the cost of doing business and making exports uncompetitive in the world markets apart from sending inflation to record highs while making common man’s life miserable.
However, now crude oil prices in the international market have come down to below $40 per barrel and this is high time that the government immediately pass on the benefit to the people by reducing domestic oil prices, observed Shaban Khalid, Acting President Islamabad Chamber of Commerce and Industry in a statement issued here on Wednesday. He said instead of providing relief to the poor masses, the government is earning a huge revenue of about Rs15 billion per month by not passing on full benefits of reduced crude oil prices and added that the best option for the revival of business and economic activities in these recessionary times is to immediately make a hefty cut in oil prices.
Khalid said the industry has almost been crippled due to many factors like high interest rate, rising manufacturing cost and energy crisis where electricity and gas shortage have brought most units to almost shutdown position.
Moreover, the existing investors are also finding it hard to pay interest at such high rates especially now that the volumes have shrunk to almost 50 per cent. He said more investments were made in the textile sector in expectation of rising exports but now high interest rates have made payback of loans and interest very difficult for such investors.
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ISSN 1563-9479 
