According to media reports, OPEC+ have to stick to an existing pact to hike oil output by 400,000 barrels per day (bpd) in November, despite consumer calls for more crude and surging prices that threaten an economic recovery from the pandemic. The situation clearly shows that oil prices are not going to come down anytime soon.
Why I’m deeply concerned about the rise in oil prices because Pakistan, indeed, is one of those countries that are finding it extremely difficult to deal with the challenge of rising prices of commodities in the global markets in the midst of breakout of pandemic. The incumbent government has already initiated a slew of socio-economic programmes. In one of its latest decisions, it has announced targeted subsidy on all essential food items as food inflation in particular has refused to be tamed. No doubt, the government has been facing the double whammy of pandemic and global price increases. Unfortunately, there’s no silver lining or a positive aspect in an otherwise negative situation.
Nasrin Khan (Islamabad)
Copyright Business Recorder, 2021
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