In just over two weeks, Pakistan has endured a dual economic shock — sharply rising fuel prices and sweeping tax enforcement measures — deepening stress for citizens and businesses alike.

On July 1, petrol prices rose by Rs8.36 to Rs266.79 per litre, while diesel jumped Rs10.39 to Rs272.98. Quietly embedded in the hike was a Rs2.5 per litre “climate support levy” layered atop existing petroleum duties and dealer margins.

Diesel saw the steepest rise, prompting outcries from transport unions and industrial lobbies. Fifteen days later, another jolt followed. Petrol rose by Rs5.36 and diesel by Rs11.37, taking diesel to Rs284.35 per litre — a cumulative Rs21.76 increase in July alone. These successive hikes have turned fuel into a flashpoint for inflation, unrest, and financial hardship.

For Pakistan’s real economy, particularly sectors like textiles, steel, construction, and logistics, the rising cost of fuel is proving existential. Exporters report eroding competitiveness and surging freight costs. Factory closures in industrial zones like Sindh Industrial Trading Estate and Korangi seem no longer hypothetical but imminent.

Ordinary citizens and industries struggle under the weight of the new finance bill’s tax measures

Yet, even as industries struggle, the government has pressed ahead with a raft of controversial tax measures embedded in the Finance Act........

© Dawn Business