Gas price hike amounts to mini budget
No justification for hefty domestic gas tariff hike
Govt failing itself by launching war against subjects
Masses should not pay for the slippages of elite
Government has raised gas prices sizably without any proper reason or explanation strengthening the notion that it lacks any economic agenda and believes in mini budgets.
The latest price increase, 6th energy hike in four months, will fuel inflation that rose at fastest pace in 30 years.
Government says annual gas subsidies amount to 35.2 billion rupees and it aims to cut it by 11.3 billion, a claim yet to be verified, said Dr. Murtaza Mughal, President Pakistan Economy Watch.
The 31 percent hike that is highest in the region is the most damaging one for country; it amounts to elimination of poor instead of poverty.
The increase will hike cost of production and unleash inflation hitting poor who have over 95 percent share in production and about 4 percent negligible share in resources.
Also, it has socked textile and cement producers who were expecting some relief as cost of doing business has been increasing. It will also hit these vital sectors and exports will be threatened.
World Bank has rightly said that the planning system in Pakistan is incompetent and PEW feels that the steps of ruling coalition may result in sovereign default or bankruptcy, he said.
A deaf year has been turned to the directives of international lenders pushing for effective control over cartels that includes banking, cement, sugar, wheat, automobile, pharmaceuticals etc, said Dr. Mughal.
The energy underworld – from dealers to major retailers and explorers – made billions illegally since the ruling coalition took over and started price hikes; it is still thriving in absence of any effective control mechanism.
Masses and trading community is justifiably questioning the wisdom behind raise in gas, something that is produced domestically. It is not oil 85 percent of which is imported. Political leaders are also blaming government for failing to discharging duties to masses.
Also, the economic managers seems trusting in printing excessive currency and State Bank of Pakistan has been forced to print Rs 551 billion that increased circulation by 19 percent, hit the main stock index and devalued currency. SBP is now 60-year old and should not be treated as a spoiled kid.
The rulers seem to have a consistent policy to give priority to protect their party interest over the national interest and the recent budget is reflective of this approach towards grave economics issues.
Someone is yet to take any action against those who stole billions of public money and got relieved due to political compromises.
