IMF agreement, respite for the government, oil will go to the people

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In a program, the female host asked the guest that if a tiger was locked in a cage with you, what would you do? The guest looked at the host for a while and said !! What can I do?

Experts say that the country’s economy had come to such a critical point in history that what had to be done was done by the IMF. It is certain that the government has got an opportunity to shift the economy from the ICU to the ward and now it is to be seen how much the government can take advantage of this opportunity.

At the same time, the first official result of the agreement with the IMF has come. Despite the decrease in ex-refinery price of petrol by 7.5 rupees, why did the government not make petrol cheaper for the people? Because the IMF has to repay the loan and interest, and for this, every government that contracts with the IMF has to impose a financial burden on the public. Under the pleasant name of Petroleum Development Levy, the tax on petrol has been increased from Rs 50 to Rs 55 per liter while two and a half rupees per liter have been increased in the form of Inland Equalization Freight Margin (IEFM), which makes petrol seven and a half rupees per litre. The benefit of reduction could not reach the people while the PDL tax on petrol has reached the highest level in history at Rs 55 per litre.

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The trials of the people do not end here. Under the new agreement with the IMF, the government is obliged to gradually increase the petroleum development levy on petrol and diesel to 60 rupees per liter within the next three months. The government is expected to earn billions of rupees from this. But all this financial burden and the burden of inflation arising from it has to be borne by the people.

Apart from this, electricity and gas will have to be more expensive under the new agreement, which will add more fuel to the already growing fire of inflation.

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The IMF has mandated the Central Bank of Pakistan to refrain from any intervention in the currency market and the value of the rupee will be determined by market forces. State Bank has already lifted all kinds of restrictions on imports, while there is a question mark on where the dollars will come from for imports.

The monetary policy of the State Bank will also remain under the influence of the IMF and the possibility of a reduction in the interest rate is unlikely, but the risk of an increase in the interest rate will continue to loom over us, which is demonstrated in the recent monetary policy of the State Bank. have also been done when the government ignored the demand of the business community to reduce the interest rate to meet the IMF condition and the State Bank abruptly increased the interest rate from 21% to 22% blocking the emergency meeting of the Monetary Policy Committee.

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According to the poet.

There are still more tests of love.”

. Syed Rizwan Alam is a senior reporter of Sama TV. He has work experience in leading newspapers and TV channels of the country and has been associated with journalism for the past 24 years.

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