ADVISOR to the Prime Minister on Finance Dr Abdul Hafeez Shaikh Tuesday said the government would pass on the benefit of reduced oil prices in the international market to the public and people would hear good news in this regard on May 1. Speaking in a television programme, he said the cost of energy and travel would decrease with the reduced oil prices in the international market and the government would be able to reduce the oil prices further.
The Government is somewhat slow in passing on due relief to the end consumer despite steep fall in the prices of oil in the international market but the reluctance is understandable as the authorities are finding it difficult to mobilize resources in view of the situation created by Coronavirus. Difference in price in the international and local markets as well as continuation of high percentage of taxation on POL products is sure way of boosting revenues. However, we have been maintaining in these columns that provision of relief would not only mitigate sufferings of the common man but also help generate economic activity, which should be priority number one in the prevailing circumstances. Prudent policies of the Government are already paying dividends as trade deficit has shrunk and no loans were taken from the State Bank of Pakistan. It was also because of a variety of measures introduced by the present Government that the home remittances by Overseas Pakistanis were still on the rise despite vagaries of Coronavirus in the host countries. Package offered to the construction industry has widely been hailed and hopefully it would help revive otherwise moribund economic activity. The plan of the government to focus on agriculture and Information Technology also has the potential to lessen woes of both the people and the country and, therefore, this should be unfolded at the soonest.
