Recently on Thursday 28 March 2022 the sudden hike in petrol prices is reaching at its peak which is appaling situation to manage with the economy. Moreover, another danger is that prices of electricity rates and POL prices is also going to increase in near future. This gives a shockwave each and every citizen in the country and its effects can be seen on petrol pumps and actually in every sector of economy. The dollar price against Pakistani rupee has also profound impacts on the economy of Pakistan, latest news reported.
Increased Subsidy on Petroleum goods
The large subsidy on petroleum goods was unsustainable in light of the rapidly depleted government coffers and the rising price of crude oil around the world. Furthermore, the IMF insisted on the elimination of petroleum and electricity subsidies in order to authorise the flow of bailout funds.
Subsidies have been decreased, but the petroleum levy and GST are still in place, thus POL and power costs will continue to climb in the foreseeable future. As a result, consumers and businesses alike will be hit hard by these price hikes. Consumers, however, began to feel its effects on Friday, even though markets and the rupee have responded favourably to the hike. This new administration has no choice but to raise a price freeze put in place by the previous PTI government as a farewell gift, though this might have been done slowly, according to latest news update.
Effective strategies needed to lessen Impacts on Middle and Working classes
However, the country’s economic planners must come up with strategies to lessen the impact on the working and middle classes, in particular. Higher fuel prices could set off an inflationary storm at a time when most people are already scrimping and saving.
, according to latest news update even though some relief measures were reported, creative economic thinking is still needed to combat the monster of inflation, as price rises will affect nearly every area of our economy in the next years. Transportation costs, food costs, and utility costs are all expected to climb, and some businesses have already raised their rates.
An investigation into the impact POL rises have had on everyday item costs is needed by the state to ensure that retailers aren’t ripping off consumers. Even though the state rarely uses them, price-checking systems can come in handy in this situation, according to latest news update.
Higher Tax on Elite class is remedial Solution
In the long run, rising wages and economic and industrial growth, as well as higher taxes on the wealthy and closing tax loopholes for the elite, are likely remedies to our financial stagnation. In order to enhance the nation’s financial health, those who live lavish lifestyles should pay their due part instead of those who are already overtaxed.
Investments in renewable energy can protect the public from volatile global oil prices, while better public transportation can lower the number of vehicles on the country’s roadways and hence cut fuel use, according to latest news update.
In addition to the state’s primary role in reducing the impact of rising fuel prices, localities must also consider communal measures to assist weather the economic crisis. As an example, carpooling to work and school, or working from home, can assist save transportation expenditures, as well.