FINANCE Minister Ishaq Dar is receiving criticism for enhancing the prices of petroleum products by almost twenty rupees per litre. As much as we empathize with the burden this imposes on the people, it is also vital to recognize that this decision was not taken lightly. The surge in international petroleum prices coupled with the obligation to the International Monetary Fund (IMF) program left the government with little choice but to take measures that are in the best interest of the nation’s long-term economic stability.
Hence, the recent increase in petroleum prices was imminent no matter who would have been holding the office of the Finance Minister. While the terms and conditions of the IMF program might be demanding, we have no option but to abide by them to demonstrate fiscal responsibility to the international community. Failing to comply with these obligations could jeopardize Pakistan’s access to critical financial aid, further aggravating its economic vulnerabilities. In the light of these circumstances, the government’s decision to increase petroleum prices can be seen as a responsible and necessary step. The way Finance Minister Ishaq Dar has navigated through economic challenges is really commendable and is testament to his exceptional expertise and unwavering dedication. When he assumed the office, the country was faced with severe macroeconomic imbalances and a struggling foreign exchange reserve. Despite these daunting challenges, Dar embarked upon an ambitious mission to stabilize the economy and put it on the growth path. Amidst dire predictions of an impending default, Ishaq Dar remained consistent in his assertion that such a scenario would not occur. He proved to be true to his word and after the standby arrangement with the IMF, this threat has been averted. A significant achievement worth mentioning is the notable reduction in the current account deficit during the fiscal year 2022-23, which reached a mere 2.56 billion dollars. This marks a substantial decline from the deficit of 17.4 billion dollars recorded in the financial year of 2021-22. It is particularly noteworthy that the last four months of the previous fiscal year saw a surplus in the current account with June showing a surplus of 334 million dollars. These encouraging outcomes demonstrate Dar’s effective policy in stabilizing the country’s external sector. There is a need to continue with this fiscal discipline in order to take the country towards a positive growth trajectory.
