PRIME Minister Shehbaz Sharif on Wednesday directed the relevant authorities to formulate a comprehensive strategy to curtail the economic effects on the public in the wake of the current regional situation, stressing that it should not disrupt production or the balance of supply and demand across economic sectors. The development comes after the government earlier this week decided against imposing a smart lockdown due to differences among provinces during a high-level meeting chaired by the President and the Prime Minister.
The regional crisis presents a grave challenge to the already fragile economy but credit surely goes to the Government for taking timely and effective measures to prevent any emergency in the supply and demand of essential goods. It is also encouraging to observe that after meeting domestic requirements for food and essential commodities, progress was being made successfully on a comprehensive strategy to export surplus production. Well-managed export of such items can help strengthen forex reserves, ensure increased income for farmers and meet emergency food requirements of the countries in the war zone. The meeting reviewed medium- and long-term planning to address financial and economic challenges arising from regional tensions and the Prime Minister aptly called for close coordination among relevant ministries and institutions, keeping in view the stability and growth of all sectors of the economy. However, much depends on the ability of the Government to absorb the oil shock as this is directly linked to inflation and cost of production. There are reports the Government has assured the IMF that it will pass on any increase in prices of oil to people of Pakistan whereas it can be absorbed by lowering the excessive rate of petroleum levy.
