THE government continues to take steps aimed at providing maximum relief to the masses at a time when the commodity prices and those of petroleum products are on the rise in the international market.
After reducing the petroleum prices by ten rupees per litre and announcing Ramazan package worth eight billion rupees, the government on Friday approved a short-term tax relief of ten per cent on the import of edible oil for the next two months to ensure its uninterrupted supplies.
At present the retail prices of refined palm oil are highly volatile and have doubled in a period of twelve months.
Pakistan’s ninety percent ghee/cooking oil demand are met through imports.
This is the reason that the prices of edible oil have witnessed an unprecedented surge in the domestic market as well.
The very decision by Finance Ministry to reduce tax on import of edible oil is a step in the right direction to stabilize its prices in the domestic market.
The concerned ministry must now ensure sufficient import of cooking oil in order to avoid its shortfall.
Any shortage will only further jack up the price of edible oil which already has gone beyond the reach of common man.
It is also heartening to see the government has also increased the profit rates on almost all National Saving Schemes to absorb the benefit of a boost in its income from Pakistan Investment Bonds.
Though the analysts believe that this surge in cut-off yields may not go down well with the equity market and make it less appealing but it must also be understood that increase in the profit rates really benefit the low income groups and also encourage them to invest their savings in the National Saving Schemes.
We also need to improve our savings rates through such measures.A higher saving rate will result in a higher level of physical capital over time, allowing the economy to produce more goods and services.
Anyway the government must continue to make interventions where necessary in order to extend maximum relief to the inflation-bitten masses, ensuring also that the decisions taken are also implemented in letter and in spirit.
