The PML(N)-led coalition faces tough challenges ahead. The people are on edge because of rising prices of commodities and prolonged load shedding. After a major hike in petrol prices NEPRA has raised power tariff by Rs7.91 per unit while Ogra has notified a 45 percent hike in gas prices from July. The government has no option other than further increasing the prices of petroleum products in days to come because the subsidy on petroleum products has only been partially reduced. In case the government decides to raise the levy and sales tax also, petroleum prices would go up further.
The ruling coalition hopes to be in power for about 15 months. In the next elections its future will depend on its performance. The PM maintains that he has formulated a short-term strategy concentrated on bringing down inflation and reducing poverty. Both the aims are highly desirable. The common people have already gone through enough pain and suffering that they were told was the price for a better future. They have been given a meagre Rs 2000 per family in return.. While millions were pushed below the poverty line during the pandemic the elite emerged richer due to the exemptions and incentives provided by the government. Will the PM proceed beyond empty exhortations to the super rich to help the poor and instead expand the tax net to the powerful groups of the elite and review the exemptions and incentives provided to them? The en chasm between the richest and the poorest bodes ill for the country. Among other bad things it provides opportunity to those with extremist views a chance to use the situation to divide society.
Pakistan is to repay $23 billion in foreign debt in the next fiscal year. The dollar has against bounced back against rupee. Tough decisions need to be taken to avoid bankruptcy and revive the economy. The government too needs to cut its expenses to the barest minimum. The PM has to come clean on the charge of squandering money on newspaper advertisements for “self-promotion”. The Sindh and KP governments took the initiative to cut the petrol quota of ministers and government officials, showing the way to a slow-pving federal government.
