LAHORE: Pakistan Businesses Forum (PBF) on Sunday rejected the sharp increase in petroleum prices of Rs 35.35 per litre; termed further ruin the life of masses and industry. The nation is already witnessing a tsunami of inflation “unfortunately policy makers have pushed the economy into a ravine”.
PBF Vice President, Jahanara Wattoo said total mismanagement of our economy by incumbent government and they further crushed masses and salaried class with latest hike in petrol and diesel prices yesterday. Now Electricity and gas prices may also hike in few days and around 35 percent unprecedented inflation expected with Rs 300bn mini budget forecast after the unprecedented and artificial rupee devaluation to Rs262.6 against one dollar.
She said now all imported goods will become more expensive by an additional 10%, due to the more than 10% drop in the value of the rupee against the greenback. These goods will include food (wheat and wheat-flour, pulse and cooking oil), cotton for textile, steel scrape and energy products (oil, gas and coal).
Wattoo said the rising price of essential commodities will severely hit the common man the most, particularly those from the lower-income segments of society who were already struggling due to the ongoing financial turmoil and political upheaval.
PBF official also viewed that the economic crisis appears to have entered a critical phase in Pakistan as the cash crunch is fast squeezing the supply chains of everyday consumables with the eventual breakdown staring in the face.
The decision-makers in financial policy have wasted precious time, leading some to speculate that the crisis is caused by more than just economic factors, and that their resolution has emerged as the primary point of contention.
Although the nature of these considerations is unknown, they are significant enough to sustain the crisis, and we believe that the chances of resolving the issues are remote unless a satisfactory settlement is reached.
It is shocking to note that, despite statements of support from friendly nations and global financial institutions, no tangible steps have been taken to avert the imminent economic collapse. It would appear that the institutions and personnel entrusted with managing the nation’s economy are virtually paralyzed and unable to carry out a sufficient rescue effort; Wattoo added.
Copyright Business Recorder, 2023
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