A day after Prime Minister Imran Khan announced, what he described, the biggest relief package in the history of Pakistan, the Government jacked up prices of POL products massively, compounding difficulties of the people already hit by record inflation.
The price of petrol has been hiked by Rs. 8.03 a litre, high speed diesel Rs. 8.14 per litre, light speed diesel Rs. 5.72 and kerosene oil Rs. 6.27 a litre.
No doubt, the prices have been increased as per recommendations of the Oil and Gas Regulatory Authority (OGRA) but it may be pointed out that the Prime Minister did not approve the summary for increase in prices only four days back with directions to maintain the prices of 16 October.
One fails to understand what was the logic and benefit of delaying the increase just for four days, making mockery of the claims of the Government that it did not increase the prices to provide relief to the people.
It was widely believed at that time that the Government avoided taking the bitter decision under the pressure of the long march of Tehreek-e-Labbaik Pakistan (TLP).
Again, a day earlier, the Prime Minister strongly defended the price hike terming it as a global phenomenon and tried to mentally prepare people about possible increase in prices of POL products.
There are reasons to believe that the targeted subsidy that the Government announced for the poor has been rendered ineffective due to this single move of the Government as an increase in price of oil always has a spiralling effect on prices of other items and goods.
The situation is complicated further by weak administration and vigilance as businessmen and transporters increase prices and fares disproportionate to the increase.
The Government has taken a number of measures to revitalize the economy but it is feared that the uncertainty caused by hyperinflation would seriously affect the prospects of investment.
It is all the more regrettable that the authorities concerned are not ready to acknowledge the real causes of the inflation and that is why there is no move in sight to arrest the upward trend in prices.
The other day, the State Bank Governor claimed that rupee devaluation has nothing to do with inflation despite the fact that all imports including oil become dearer with every upward adjustment in exchange rate.
We will not be able to pursue independent policies aimed at safeguarding interests of the people until and unless we break the begging bowl that forces us to accept harsh conditions of the lenders, especially the IMF.
