The petrol price hike is not justified. The peoples government announced the biggest petrol price hike at a time when global oil prices are declining, and the Saudi government is offering some financial relief in the payment of oil purchases. Middle class and the poor in Pakistan are already facing tremendous economic challenges for their survival.
It is an established fact that any increase in petrol/diesel/CNG price hike adversely affects the middle and poor classes of the country. It appears that peoples government is doing everything in its power to crush its own people economically.
It is also interesting to note that the price hike comes at a time when ninety-nine percent of the corrupt people on the ECL are being allowed to flee the country with their booty; major benefactors of NRO are buying huge amounts of dollars to transfer their black money outside the country, thus contributing to the decline in the value of rupee; regulators being allowed to play poker with the happenings at the Karachi Stock Exchange; and import-centric policies are causing havoc with the local manufacturing sector and the foreign exchange reserves.
It appears that government officials making public policies in the form of notifications have no idea of the economic implications, at micro and macro levels, on the declining middle class of Pakistan. Public policies are being formulated by clueless government officials in a hush-hush manner without any debate or discussion in the Parliament. The petrol price hike is very harsh; the government's action is analogous to using an Ox-knife to kill a bird (the poor and the middle class) which is already dying.
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