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Rs 325b subsidy being paid on POL, wheat and
electricity
Comment
Nasir Mahmood
Karachi—Nation is facing the crisis of rising prices of Oil, Iron
products, wheat and rice. Subsidies amounting to Rs325 billion on
account of petroleum, electricity and wheat would be paid by
government from the current fiscal year 2007-2008 federal budget. It
would pay Rs125 billion to petroleum companies, Rs150 billion to
Wapda and Kesco and over Rs40 billion on the subsidy of wheat and
flour.
Even after paying huge subsidies the power crisis in the city has
once again turned gruesome, as the citizens are compelled to pass
sleepless nights due to unannounced load-shedding of electricity day
in and day out.
Unannounced load-shedding in this hot weather kept piling miseries
on Karachiites, and for residents of other cities in the country.
They are compelled to brave 6 to 8 hours of prolonged power outage,
leaving the normal life paralyzed, as it has created water problem
too. Psychiatrists fear this situation prevailing any further might
turn the suffering people losing tempers and burst into violence any
time.
Electricity tariff is likely to be raised soon. Wapda’s deficit had
exceeded over Rs120 billion and the tariff will have to be raised in
case the government gives no subsidy or grant. The situation has
aggravated to the point when a deficit of Rs10 billion has to be
faced every month by Wapda.
Power tariff will not be raised if arrears of various organizations
totaling Rs212 billion are received. Wapda will be left with no
other option than to increase tariff, sources said.
On the other hand Pakistan Steel Mills earned Rs4.576 billion profit
in 2007 before taxation, at the cost of industry in Pakistan. It had
repeatedly increased its prices without reducing undue expenses and
the rate of its products have gone up to Rs85,000 per ton. It means
a piece of one kg iron is now costing Rs85/- to local industry and
more than that to consumers.
According to analysts the uncontrollable rise in prices of the
essential commodities like POL products, iron & steel, and wheat &
rice is directly proportional to wars waged by America and its
40-country allied forces in Iraq, Afghanistan, and Muslim African
countries while they are further planning some hectic preparations
to soon start aggression against Iran.
Analysts talking to Pakistan Observer urged upon the world-over
think tanks to concentrate on reckless consumption and wastage in
million of tons everyday the world precious resources like oil, iron
and wheat by hundreds of thousand soldiers and the war machinery
belonging to America and its allied forces in above-referred war
torn countries.
Bad impact of these irrational, unethical and meaningless wars
against Muslim countries could be evaluated from the fact that crude
prices of POL continue to baffle analysts. There is now a growing
chatter within the energy fraternity that $200 a oil barrel may not
be a far fetched idea altogether.
There is a huge risk that the oil price simply continues to escalate
until it gets to some level, possibly $250 when demand finally
collapses because ordinary people can no longer afford to burn as
much energy as they are burning now.
An observer blaming American terrorism said weakness in the dollar
and global political insecurity for the current market has direct
relationship between the sinking dollar and the ascending crude
prices. With the dollar losing one percent of its value, oil prices
rise by $4 a barrel and vice versa. Warring Americans were using
cheap oil for armed vehicles, aircrafts and navies while heavily
charging the poor countries through escalating oil prices to cover
up their war spending.
Similarly, iron and steel was being used in manufacturing of light
and heavy arsenals, missiles, tanks, artilleries, bombs and other
means of war machinery. While wheat, rice and other food stocks were
being smuggled from Pakistan to Afghanistan for lavish living of
American and allied forces which have no future plan for withdrawal
from this territory. Instead the United States is sending 7,000 more
troops to war-torn Afghanistan after which the number of US troops
in the country would rise to 40,000.
Hence, poor and peace-loving countries of the world should take care
of US & allied forces and their ulterior motives in the region, who
are the mother of all ills. If their pitiless advancement is
continued without any remarkable resistance, the peace of the world
would remain at stake.
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