Maaz Mahmood warns of eroding competitiveness and shrinking consumer capacity amid volatile prices
ISLAMABAD, OCT 4 /DNA/ – The All Pakistan Business Forum (APBF) has voiced grave concern over the renewed surge in inflation and production costs following the latest Sensitive Price Indicator (SPI) data released by the Pakistan Bureau of Statistics, which showed a 4.07 per cent year-on-year increase for the week ended October 2, 2025. The Forum warned that persistent food and fuel price volatility is rapidly eroding industrial margins and consumers’ purchasing power, threatening to undo fragile economic stability achieved in recent months.
APBF President Syed Maaz Mahmood said the new figures “expose the deeper structural weakness of Pakistan’s price management system” and the government’s failure to cushion both households and industries from the dual impact of energy hikes and supply-side disruptions. He noted that while the overall SPI increase appeared moderate compared to past double-digit spikes, “the real pain lies in the uneven distribution of inflation—where food and fuel keep soaring while other categories fluctuate unpredictably.”
Maaz Mahmood cited the 46 per cent weekly surge in food items and persistent increases in petrol and diesel as examples of inflationary volatility that ripple through every layer of the economy. “When essential commodities become unpredictable, cost control for manufacturers becomes impossible,” he said. “Energy and transport costs have a multiplier effect. Each rise in fuel prices directly inflates logistics, packaging, and raw material procurement—ultimately pushing finished goods out of consumers’ reach.”
He warned that the situation is becoming untenable for both producers and consumers. “Our factories are fighting a constant battle between survival and shutdown. Input costs for gas, power, and imported raw materials have climbed steadily, while demand in domestic markets has weakened due to shrinking disposable incomes,” Mahmood said. “This cycle of high costs and low consumption is suffocating growth.”
APBF Chairman Ibrahim Qureshi echoed these concerns, saying the inflationary pressure reflected in the SPI data was symptomatic of a wider crisis of production economics. “Industrial Pakistan is running on thin margins. Inflation at the consumer level is not just a household burden—it is a reflection of our broken supply and cost chain,” Qureshi stated. “Even a small rise in diesel, electricity, or gas tariffs magnifies production expenses several times over. The recent data showing yearly increases of nearly 30 per cent in gas charges and over 12 per cent in diesel are devastating for manufacturers.”
Ibrahim Qureshi lamented that despite the government’s claims of macroeconomic improvement, “real-sector recovery remains elusive.” He said that export-oriented industries, particularly in textiles, engineering, and chemicals, cannot plan production or pricing in such volatile conditions. “Factories are being forced to delay orders, scale down operations, or shift costs to consumers, which only feeds back into inflation,” he noted.
The APBF leadership jointly urged the government to immediately stabilise energy tariffs, streamline import procedures, and ensure predictable pricing of essential industrial inputs. They proposed a coordinated policy mechanism involving the Special Investment Facilitation Council (SIFC), the finance ministry, and business chambers to devise short-term relief and long-term stability measures.
Maaz warned that unchecked inflation and rising production costs could soon translate into job losses, lower tax revenues, and declining investor confidence. “Inflation is not just a statistical number—it’s a national threat,” Qureshi concluded. “If factories close and shelves empty, no amount of macroeconomic optimism will matter. We need immediate, coordinated action to control inflationary drivers, support producers, and restore confidence across the economy.”
The APBF president showed its commitment to work with policymakers and trade bodies to propose pragmatic solutions for inflation management and industrial cost rationalisation, stressing that Pakistan’s economic revival depends on protecting its productive backbone from collapse under the weight of uncontrolled price pressures.
