Maaz Mahmood warns of eroding competitiveness and shrinking consumer capacity amid volatile prices
\n Islamabad
\nThe 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.
\nThe Forum warned that persistent food and fuel price volatility is rapidly eroding industrial margins and consumers\u2019 purchasing power, threatening to undo fragile economic stability achieved in recent months.
\nAPBF President Syed Maaz Mahmood said the new figures \u201cexpose the deeper structural weakness of Pakistan\u2019s price management system\u201d and the government\u2019s failure to cushion both households and industries from the dual impact of energy hikes and supply-side disruptions.
\nHe noted that while the overall SPI increase appeared moderate compared to past double-digit spikes, \u201cthe real pain lies in the uneven distribution of inflation\u2014where food and fuel keep soaring while other categories fluctuate unpredictably.\u201d
\nMaaz 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.
\n\u201cWhen essential commodities become unpredictable, cost control for manufacturers becomes impossible,\u201d he said. \u201cEnergy and transport costs have a multiplier effect. Each rise in fuel prices directly inflates logistics, packaging, and raw material procurement\u2014ultimately pushing finished goods out of consumers\u2019 reach.\u201d
\nHe warned that the situation is becoming untenable for both producers and consumers. \u201cOur factories are fighting a constant battle between survival and shutdown.
\nInput costs for gas, power, and imported raw materials have climbed steadily, while demand in domestic markets has weakened due to shrinking disposable incomes,\u201d Mahmood said. \u201cThis cycle of high costs and low consumption is suffocating growth.\u201d
\nAPBF Chairman Ibrahim Qureshi echoed these concerns, saying the inflationary pressure reflected in the SPI data was symptomatic of a wider crisis of production economics. \u201cIndustrial Pakistan is running on thin margins. Inflation at the consumer level is not just a household burden\u2014it is a reflection of our broken supply and cost chain,\u201d Qureshi stated.
\n\u201cEven 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.\u201d
\nIbrahim Qureshi lamented that despite the government\u2019s claims of macroeconomic improvement, \u201creal-sector recovery remains elusive.\u201d
\nHe said that export-oriented industries, particularly in textiles, engineering, and chemicals, cannot plan production or pricing in such volatile conditions. \u201cFactories are being forced to delay orders, scale down operations, or shift costs to consumers, which only feeds back into inflation,\u201d he noted.
\nThe APBF leadership jointly urged the government to immediately stabilise energy tariffs, streamline import procedures, and ensure predictable pricing of essential industrial inputs.
\nThey 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.
\nMaaz warned that unchecked inflation and rising production costs could soon translate into job losses, lower tax revenues, and declining investor confidence. \u201cInflation is not just a statistical number\u2014it\u2019s a national threat,\u201d Qureshi concluded.
\n\u201cIf 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.\u201d
\nThe 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\u2019s economic revival depends on protecting its productive backbone from collapse under the weight of uncontrolled price pressures.<\/p>\n","protected":false},"excerpt":{"rendered":"
Maaz Mahmood warns of eroding competitiveness and shrinking consumer capacity amid volatile prices Islamabad 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 […]<\/p>\n","protected":false},"author":2,"featured_media":439759,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-506802","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n